Myanmar NES - Trade Facilitation and Logistics

REPUBLIC OF THE UNION OF MYANMAR
NATIONAL EXPORT STRATEGY

TRADE FACILITATION
AND LOGISTICS
CROSS-SECTOR STRATEGY 2015-2019
Myanmar Ministry of Commerce

The National Export Strategy (NES) of Myanmar is an official
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The National Export Strategy of the The Republic of the Union of Myanmar was
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THE REPUBLIC OF THE UNION
OF MYANMAR
TRADE FACILITATION AND LOGISTICS
CROSS-SECTOR STR ATEGY 2015-2019

THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY III
ACKNOWLEDGEMENTS
This Trade Facilitation and Logistics cross-sector strategy forms an integral part of
Myanmars National Export Strategy (NES). The NES was made possible with the support
of the Government of the Republic of the Union of Myanmar (GRUM), under the leadership
of Myanmar Ministry of Commerce (MoC), the financial support from Germanys Federal
Ministry for Economic Cooperation and Cooperation (BMZ) in collaboration with the Deutsche
Gesellschaft fr Internationale Zusammenarbeit (GIZ) and the technical assistance of the
International Trade centre (ITC).
The coordination support of the Ministry of Commerce The Directorate of Trade:

Department of Trade Promotion: Ms. Shwe Zin Ko
Mr. Aung Soe Assistant Director, Department of Trade Promotion,
Deputy Director General, NES Navigator, Ministry of Commerce
Department of Trade Promotion,
Ministry of Commerce Technical facilitation and support
Dr. Maung Aung from the International Trade Centre (ITC):
Economist, Advisor to the Minister of Commerce, Mr. Darius Kurek
Ministry of Commerce Associate Advisor, Export Strategy
Ms. Naw MutaKapaw Mr. Robert Kafafian
Director, Department of Trade Promotion, International consultant
Ministry of Commerce Ms. Marnie McDonald
Ms. Thidar Win Htay Editor
Assistant Director, Department of Trade Promotion,
Ministry of Commerce The strategy team leader:
Ms. Mya Mya Sein Ms. Daw Hla Hla Yee
Assistant Director, Department of Trade Promotion, Coordinator, Myanmar International Freight
Ministry of Commerce Forwarders Association
IV THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY
The members of the strategy team:
U Saw Aung U Van Aung U Peter Thaung Pe

General Manager, Assistant Director, Internal Vice Chairman, Myanmar
Ministry of Construction Revenue Dept Mercantile Marine Development
Daw Sanda Thein U Htaik Htaik Assiciaton (MMMDA)
Director, Transport Planning Dept Assistant Director, Daw khin Moe Myint
U Sein Win Department of Transport Observer, JICA/TTI
DGM, Department of Transport Daw Kyawt Kyawt Moe Daw Su Win Myat
U Myint Soe Assistant Director, Assistant General Manager,
Director, MOC Department of Civil Aviation Myanmar Citzens Bank
Daw Naw Mutakapaw U San Htay Bo U Hla Oo
Director, MOC Manager, MPA Chairman, Myanmar Highway
May Oo Khaing U Yan Aung Trucks Association
BOD of MIFFA Head of Dept., Myanmal Costal U Ko Ko Naing
U Nyi Nyi Aung Shipping Association Joint Secretary, Myanmar
Deputy Director, MOC U Nyi Nyi Soe Highway Trucks Association
U Ohn Myint Staff Officer, Custom Department U Min Kyi
Deputy Director, MOHA U Hla Win GM,MITT
Daw Nilar Zin Staff Officer, MOC Daw Ohn Mar Maw
Deputy Director, Dept of Mines U Thet Aung Joint BOD, MIFFA
Daw Khin Sabai CEO, Myanmar Container-Trucks U Aung Myo Thu
Deputy Director, Dept, of RTAD Association Mr. Kazuo Mishima
Daw Nilar Thein Observer, JICA/TTI
Assistant Director, MOC Mr. Ohtsura
Observer, TTI
THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY V
ACRONYMS
ADB Asian Development Bank MoT Ministry of Transport

ASEAN Association of Southeast Asian Nations MoRT Ministry of Rail Transport
CUSDEC-1 Customs Declaration Form 1 MPA Myanmar Port Authority
CUSDEC-2 Customs Declaration Form 2 MTDC Myanmar Trade Development Committee
DCA Department of Civil Aviation NACCS Nippon All Cargo Consolidation System
EDI Electronic Data Interchange NES National Export Strategy
FDI Foreign Direct Investment OECD Organisation for Economic Cooperation
GMS Greater Mekong Subregion and Development
ICT Information and Communications Technology PoA Plan of Action
ITC International Trade Centre PPP PublicPrivate Partnership
IWT Inland Water Transport SATNET Network for Knowledge Transfer on
Sustainable Agricultural Technologies
JICA Japan International Cooperation Agency
and Improved Market Linkages in South
LPI Logistical Performance Index and South-East Asia
MCBA Myanmar Customs Brokers Association SEZ Special Economic Zone
MIFFA Myanmar International Freight Forwarders TFL Trade Facilitation and Logistics
Association
TSI Trade Support Institution
MMMDA Myanmar Mercantile Marine Development
UMFCCI Union of Myanmar Federation of Chambers
Association
of Commerce and Industry
MoC Ministry of Commerce
UNESCAP United Nations Economic and Social
MoCon Ministry of Construction Commission for Asia and the Pacific
MoFR Ministry of Finance and Revenue
VI THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY
CONTENTS
EXECUTIVE SUMMARY 1
INTRODUCTION 3
WHERE WE ARE NOW 5
REGIONAL CONTEXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
CURRENT STATE OF TFL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
INSTITUTIONAL PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
CROSS-SECTOR DEVELOPMENT INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . 21
COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
WHERE WE WANT TO GO 31
VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
HOW TO GET THERE 33
STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
IMPORTANCE OF COORDINATED IMPLEMENTATION . . . . . . . . . . . . . . . . . . 33
PLAN OF ACTION 35
APPENDIX 1: MEMBERS OF SECTOR TEAM 45
BIBLIOGRAPHY 46
THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY VII
LIST OF FIGURES
Figure 1: Buy-ship-pay model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Figure 2: Asia and the Pacific trade facilitation performance gap (extra time
and cost as a percentage of Group of 7 average time and cost). . . . . . . . . . . 6
Figure 3: GMS economic corridors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 4: LPI of ASEAN nations 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 5: LPI and LPI subindicators 2012; Myanmar and ASEAN average . . . . . . . . . . 10
Figure 6: Myanmar ports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Figure 7: Myanmar export procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 8: Myanmar import procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

VIII THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY
TABLES
Table 1: Time and cost to export and import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2: Import/export procedures for select South-East Asian economies (2008). . . 6
Table 3: Time to import/export for select South-East Asian economies (in days) . . . . 6
Table 4: GMS economic corridor routes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 5: Impact of economic corridor development afterNorth-South Corridor

upgrading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Table 6: Key cross-border trade points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Table 7: Exporting from Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Table 8: Importing into Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Table 9: Myanmar TFL policy support network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 10: Myamar TFL trade services network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 11: Myanmar TFL civil society network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Table 12: Perception of Myanmars TFL TSIs capacity versus influence. . . . . . . . . . . 21
THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY IX
BOXES
Box 1: Defining TFL in the context of export competitiveness . . . . . . . . . . . . . . . . . . . . . . 4
Box 2: Policy issues affecting TFL in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Box 3: Institutional issues affecting TFL in Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Box 4: Enterprise issues affecting TFL in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

EXECUTIVE SUMMARY 1
EXECUTIVE SUMMARY
An efficient trade facilitation and logistics (TFL) cross- Despite such difficulties, Myanmar has taken a number
sector allows enterprises to engage in international trade of steps aimed at enhancing the TFL function. More re-
in a cost-effective, time-sensitive and reliable manner. cently, Myanmar has looked to Special Economic Zones
Remediating procedural and physical hurdles is a pre- (SEZs) as a means by which to attract foreign direct in-
requisite for participating in global value chains. The per- vestment (FDI) and promote competitiveness through
formance of key priority sectors of the National Export various tax and regulatory incentives. While a number of
Strategy (NES), therefore, will to a large extent depend zones are under development, existing ones have thus
upon Myanmars ability to foster a healthier environment far been instrumental in allowing Myanmar to develop the
for trade. basic infrastructure needed to support economic activity,
which includes roads, telecom services and power ser-
vices. Myanmar also continues to look towards corridor
CURRENT STATE OF TFL development as the model for enhancing both trade and
economic cooperation. With a focus on supporting net-
Myanmars logistics systems are currently underdevel- works of geographically clustered infrastructure and en-
oped, and the country was ranked 133 out of 155 coun- terprises, Myanmar hopes to better connect stakeholders
tries in the World Banks Logistical Performance Index to both production and demand domestically and within
(L PI) in 2012. With the lowest LPI ranking among its the greater region. Strategically located in the heart of
South-East Asian peers, Myanmar faces particular dif- emerging Asia, Myanmar is well-placed to leverage its
ficulties with regards to the quality of transport-related potential and become a modern hub of economic activity.
infrastructure, late deliveries and the inability to track and
trace consignments. Enterprises can leverage a network
of road, rail, air, river and marine transport options, but COMPETITIVENESS CONSTRAINTS
the quality of such services is sub-par. While recent in-
vestment in transportation infrastructure has focused on The following challenges have been identified for the TFL
major highways and railways, both lower level networks function.
as well as linkages between networks are in need of main-
tenance, development and upgrading. Policy challenges:
The logistical infrastructure is characterized by a lack of Absence of integrated transport development;

modern equipment and processes. Bonded warehouses Limited participation of the private sector;
are unavailable and there are no proper inland container Government price subsidies and fixed tariffs;
depots. Electronic Data Interchange (EDI) and inventory Limited support for safety;
services are absent, and all warehousing and container Advance income tax payments.
management processes lack information and commu-
nications technology (ICT) capabilities. Moreover, facili- Institutional challenges:
ties at ports and train stations lack mechanized handling,
thereby reducing transport efficiency. The difficult trade Inadequate port facilities;
environment is further complicated by burdensome cus- Lack of inland container depot capacities;
toms procedures, outdated regulations and a lack of Lack of automated scheduling;
communication between authorities and private sector Lack of bonded warehouses;
stakeholders. Absence of EDI;
Paper-based and burdensome customs procedures;
Lack of cold chain management systems;
THE REPUBLIC OF THE UNION OF MYANMAR NATIONAL EXPORT STRATEGY
2 TRADE FACILITATION AND LOGISTICS CROSS-SECTOR STRATEGY 2015-2019
Absence of a domestic cargo manifest system;

Insufficient human resources capacities at freight for-
warders and customs brokers;
Underused rail networks;
Inadequate road networks;
Limited inland waterway development;
Burdensome business procedures.
Enterprise challenges:
Slow transportation from production sites to destinations;

High and volatile transportation costs;
Insufficient access to modern financial tools.
OPTIONS FOR FUTURE DEVELOPMENT

Improvements within the TFL function are a critical pre-
requisite for unlocking Myanmars export potential. As a
result, the following vision has been developed for the
function.

A cutting-edge, efficient, integrated and predictable logistics

and trade facilitation system for growth, competitiveness
and the development of Myanmar.
ROADMAP FOR STRATEGY

IMPLEMENTATION
The achievement of these objectives will require continu-
The vision and the key features for the function will be ous and coordinated efforts from all relevant private and
achieved through the implementation of the strategys public stakeholders as well as support from key finan-
Plan of Action (PoA), which revolves around the following cial and technical partners, donors and investors. Several
four strategic objectives, each spelling out specific sets institutions are designated to play a leading role in the
of activities intended to address both challenges and op- implementation of the strategys PoA and bear the over-
portunities in the TFL function in Myanmar: all responsibility for successful execution of the strategy.
They will be assisted by a range of support institutions
Improve the quality of facilitation and logistical ser- that are active in the TFL function. Each institution man-
vices by encouraging the development of skills and dated to support the export development of the function
the adoption of best practices; is clearly identified in the strategy PoA. Moreover, the
Improve facilitation and logistical capacities by encour- Myanmar Trade Development Committee (MTDC) has
aging the development of physical and non-physical a coordinating and monitoring role in the implementa-
infrastructure; tion of the strategy within the overall framework of the
Amend the regulatory and oversight framework in order NES. In particular, the MTDC is tasked with coordinating
to facilitate a more efficient trade environment; the implementation of activities in order to optimise the
Ensure that exporters have sufficient knowledge and allocation of both resources and efforts across the wide
capacities to meet TFL requirements. spectrum of stakeholders.
INTRODUCTION 3
INTRODUCTION
The trade facilitation and logistics strategy contained world underwent one of the most dynamic growth periods
in this document forms an integral part of the National in economic history, Myanmar stagnated under the weight
Export Strategy (NES) of Myanmar. An efficient TFL cross- of both social and economic isolation.
sector allows enterprises to engage in international trade
in a cost-effective, time-sensitive and reliable manner. Some progress was achieved, however, following a de-
Remediating procedural and physical hurdles is a prereq- gree of economic liberalization that took place in 1988.5Al-
uisite for participating in global value chains. The perfor- ready a founding member of the General Agreement on
mance of key priority sectors of the NES, therefore, will to Tariffs and Trade in 1947, the following years saw Myanmar
a large extent depend upon Myanmars ability to foster a join the World Trade Organization as well as other region-
healthier environment for trade. Although Myanmar has al organizations such as the Association of Southeast
made much progress in recent years, the cross-sector Asian Nations (ASEAN), the Greater Mekong Subregion
remains underdeveloped. (GMS) and the Bay of Bengal Initiative for Multi-Sectoral
Technology and Economic Cooperation.67
This document presents the expectations and strategic
objectives of the private and public sectors for the en- Despite these efforts, integration continued to be elusive
hancement of TFL in Myanmar. Unless critical issues are in the late twentieth and early twenty-first centuries. In re-
addressed in a comprehensive manner, enhanced ex- sponse to issues such as crackdowns on pro-democracy
port competitiveness will remain elusive. This strategy protests, forced labour, or the reinstatement of military
therefore outlines a holistic approach to overcoming chal- rule, a number of Western countries punished Myanmar
lenges through targeted implementations at both the in- with wide-ranging sanctions.8 These sanctions succeed-
stitutional and enterprise levels. ed in damaging the business environment and severely
limited integration on both the supply and demand sides.
While export restrictions reduced potential markets, im-
HISTORICAL OVERVIEW port restrictions distorted markets while leading to input
shortages and weaknesses throughout the supply chain.
In the late nineteenth and early twentieth centuries,
Myanmar was fully participating in global economic de- Nonetheless, recent political changes in Myanmar have
velopment. As one of the fastest-growing and most ad- been met with a lifting of most sanctions and an influx of
vanced countries in Asia at the time, Myanmar boasted aid and investment.9 While many non-tariff regulatory bar-
advanced transport and communications networks, and riers have been removed, the legacy of isolationism has
Yangon was an important regional transport hub.1 In the left the country with insufficient infrastructure and logistic
1930s, however, the nations economy was hurt first by capacities. Strategically positioned near China, India and
declining rice prices and then by World War II.2 The war Indonesia in the heart of the worlds largest and fastest
destroyed much of the countrys logistical infrastructure, growing middle class, Myanmar stands to benefit greatly
severely impeding its ability to trade with partners. By from increased regional and global integration.10 It must,
mid-century economic deterioration had resulted in a per however, overcome the obstacles of its past in order to
capita gross domestic product more than one-third less establish a solid TFL environment from which its economy
than that of Thailand or the Philippines.3 can operate effectively.
Finally, the governmental changes of 1962 ushered in

authoritarian rule coupled with a planned economy. The 5. McKinsey Global Institute (2013).Myanmars Moment:
Unique Opportunities, Major Challenges, p. 17.
ensuing period of economic and political isolation has re-
6. Myo, O. (2005). Myanmars experience on implementation of the
sulted in Myanmars current status as one of the worlds trade facilitation measures. Paper presented for Roundtable Meeting
least developed countries, with the lowest 2010 gross do- on the World Trade Organization Trade Facilitation Negotiations.
mestic product per capita in South-East Asia.4While the Geneva, 1923 September.
7. Anukoonwattaka, W. & Mikic, M. (2012). Myanmar: opening up to its
trade and foreign direct investment potential, p. 7. UNESCAP Trade and
1. McKinsey Global Institute (2013).Myanmars Moment: Investment Division, Staff Working Paper 01/12. Bangkok: UNESCAP.
Unique Opportunities, Major Challenges, p. 14. 8. McKinsey Global Institute (2013).Myanmars Moment:
2. Ibid. p. 15. Unique Opportunities, Major Challenges, p. 28.
3. Ibid. p. 15. 9. Ibid. p. 2.
4. ADB (2012). Myanmar in Transition: Opportunities and Challenges, p.3. 10. Ibid. p. 3.
Box 1: Defining TFL in the context of export competitiveness
The World Trade Organization defines trade facilitation as the simplification and harmonization of inter-
national trade procedures, where trade procedures are the activities, practices and formalities involved
in collecting, presenting, communicating and processing data required for the movement of goods in
international trade.* Trade facilitation includes all procedures required for an enterprise to bring its prod-
uct to (or import from) a foreign market, and includes such topics as logistics and administrative and
customs procedures.
The United Nations Centre for Trade Facilitation and Electronic Business and the Organisation for Economic
Cooperation and Development (OECD), meanwhile, use a broader definition for trade facilitation, which
refers to the activities, practices, and formalities required for the movement of goods in international
trade.** This approach considers all commercial, transport, regulatory and financial procedures and is
based on the buy-ship-pay model.*** The buy-ship-pay model was developed by the United Nations
Economic Commission for Europe in order to facilitate business process analyses by providing an over-
view of the information exchanged throughout the international supply chain.**** It describes three main
processes: Buy refers to activities such as identifying a potential trading partner, establishing a busi-
ness contract and placing an order. Ship is the most complex, with five main activities: (i) preparing for
export, (ii) export, (iii) transport, (iv) preparing for import, and (v) import itself. Pay represents the pay-
ment activity from buyer to seller.***** By taking a holistic view of international transactions, the model
provides a framework in which stakeholders can optimize business processes and regulatory frameworks.
Trade facilitation procedures play an essential role in promoting and enabling international transactions.
Efficient trade facilitation policies can contribute to lowering costs, diminishing both real and perceived
risks of doing business and reducing the time it takes for products to reach their final destination, all of
which can enhance a countrys competitiveness.
It can also help facilitate a healthy sourcing market by allowing enterprises to import raw materials at
lower prices. Such inputs can eventually allow firms to offer more competitive products and/or increase
profit margins.
*W orld Trade Organization (n.d.). Trade Facilitation. Available from:

http://g tad.wto.org/t rta_subcategory.aspx?cat=33121. Accessed 29 May 2013.
** ADB (2009). Designing and Implementing Trade Facilitation in Asia and the Pacific, p. 5. Manila: ADB.
*** Ibid.
*** * United Nations Economic Commission for Europe (2012). Trade facilitation implementation guide:
the buy-ship-pay model. Available from http://t fig.unece.org/c ontents/b uy-ship-pay-model.htm.
***** ADB (2009). Designing and Implementing Trade Facilitation in Asia and the Pacific, p. 5. Manila: ADB.
Figure 1: Buy-ship-pay model
Source: ADB (2 009). Designing and Implementing Trade Facilitation in Asia and the Pacific. Manila: ADB. P. 4.
WHERE WE ARE NOW 5
WHERE WE ARE NOW
REGIONAL CONTEXT Nonetheless, table 1 highlights the significant advance-

ments that have been made over recent years. While
A densely populated region, South-East Asia straddles performance gaps continue to exist, the countries of
some of the worlds most quickly developing economies. South-East Asia have reduced time to export and import
It is only in the last 20 years, however, that it has emerged by 32% and 39% respectively since 2006.
from a period of relative isolation characterized by closed
borders and dilapidated transport infrastructure.11 As a As illustrated in figure 2, it is interesting to note that South-
result, the region has a significant gap in trade facilita- East Asias time and cost of exporting and importing is
tion performance when compared with developed econo- the lowest of all Asian regions. Moreover, the cost is even
mies. On average, exporting and importing goods out of slightly less than that of the same transactions in Group
and into South-East Asian countries takes 88% and 70% of 7 countries.
more time respectively than for Group of 7 countries.12
The complicated nature of import/export procedures for
11. Stone, S. & Strutt, A. (2009). Transport infrastructure and trade select ASEAN countries is highlighted in table 2, which
facilitation in the Greater Mekong Subregion. ADBI Working Paper No. illustrates that these economies require up to twice as
130, p. 1. Tokyo: Asian Development Bank Institute. Available from
www.adbi.org/files/2009.01.20.wp130.transport.infrastructure.trade.
much documentation as OECD nations for the same
facilitation.mekong.pdf. transactions.
12. ADB (2009). Designing and Implementing Trade Facilitation in Asia
and the Pacific, p. 17. Manila: ADB.
Table 1: Time and cost to export and import
Source: ADB (2 009). Designing and Implementing Trade Facilitation in Asia and the Pacific, 2013 Update, p.17. Manila: ADB.
Figure 2: Asia and the Pacific trade facilitation performance gap (extra time and cost as a percentage of Group of 7 aver-
age time and cost)
Source: ADB (2 009). Designing and Implementing Trade Facilitation in Asia and the Pacific, 2013 Update, p.21. Manila: ADB.
Table 2: Import/export procedures for select South-East Asian economies (2008)
Source: ADB (2 009). Designing and Implementing Trade Facilitation in Asia and the Pacific, p.6. Manila: ADB.
Table 3: Time to import/export for select South-East Asian economies (in days)
Source: ADB (2 009). Designing and Implementing Trade Facilitation in Asia and the Pacific. Manila: ADB.
WHERE WE ARE NOW 7
The procedure that requires the greatest amount of time As of 2008, with the formation of the Economic Corridors
is document preparation, which suffers from a lack of ICT Forum, the GMS has shifted its focus towards develop-
capacities and poor coordination among authorities.13 In ing economic corridors as a means of facilitating trade,
comparison to high-income OECD countries, inland trans- stimulating development and attracting investment. As
port, customs clearance and port handling in South-East defined by the Asian Development Bank (ADB):
Asian nations also add excessive time to import/export
transactions. Economic corridors connect economic agents along
a defined geography. They provide connection[s]
In order to address persistent problems of trade within between economic nodes or hubs, usually centred
the region, the countries of South-East Asia formed the on urban landscapes, in which large amount[s] of
GMS in 1992.14 Today the GMS encompasses six coun- economic resources and actors are concentrated.
tries (including Myanmar), 2.6 millionkm2 and roughly 326 They link the supply and demand sides of markets.17
million people.15 While working to enhance economic re-
lations through subregional cooperation, the GMS has By taking a geographic approach to development, these
embarked on a number of transport and trade facilitation corridors allow for benefits to be distributed among a
programmes that have greatly improved travel times, re- large swathe of stakeholders within a region. The mem-
duced costs and eased cross-border movement.16 ber countries participate in the forum in order to focus on
areas of collaboration leading to corridor development.
13. ADB (2009). Designing and Implementing Trade Facilitation in Asia
and the Pacific, p. 6. Manila: ADB. The GMS is comprised of three principal economic cor-
14. Stone, S. & Strutt, A. (2009).Transport infrastructure and trade ridors: the North-South Economic Corridor, the East-
facilitation in the Greater Mekong Subregion. ADBI Working Paper No. West Economic Corridor, and the Southern Economic
130, p. 1. Tokyo: Asian Development Bank Institute. Available from Corridor.18 The main sub-corridors and their routes are
facilitation.mekong.pdf. outlined in table 4.
15. ADB (2013). Greater Mekong subregion. Available from www.adb.
org/countries/gms/main. 17. Brunner, H.-P. (2013). What is economic corridor development
16. Stone, S. & Strutt, A. (2009). Transport infrastructure and trade and what can it achieve in Asias subregions? p. 1. ADB Regional
facilitation in the Greater Mekong Subregion. ADBI Working Paper No. Economic Integration Working Paper No. 117. Manila: ADB.
130, pp. 12. Tokyo: Asian Development Bank Institute. Available from 18. ADB (2014). Greater Mekong subregion Multisector development
www.adbi.org/files/2009.01.20.wp130.transport.infrastructure.trade. of economic corridors. Available from:
facilitation.mekong.pdf. http://www.adb.org/countries/gms/sector-activities/multisector.
Table 4: GMS economic corridor routes
Economic corridor Sub-corridor Route

NorthSouth Western Kunming (China) Chiang Rai (Thailand) Bangkok (Thailand) via the Lao Peoples
Economic Corridor sub-corridor Democratic Republicor Myanmar
NorthSouth Central sub- Kunming (China) Ha Noi (Viet Nam) Hai Phong (Viet Nam)
Economic Corridor corridor
NorthSouth Eastern Nanning (China) Ha Noi (Viet Nam) via the Youyi Pass or Fangchenggang (China)
Economic Corridor sub-corridor Dongxing (China) Mong Cai (Viet Nam) route
EastWest -------- Da Nang Port (Viet Nam), through the Lao Peoples Democratic Republic and
Economic Corridor Thailand, to Mawlamyine Port in Myanmar
Southern Central sub- Bangkok (Thailand) Phnom Penh (Cambodia) Ho Chi Minh City (Viet Nam)
Economic Corridor corridor Vung Tau (Viet Nam)
Southern Northern Bangkok (Thailand) Siem Reap (Cambodia) Stung Treng (Cambodia)
Economic Corridor sub-corridor Ratanakiri (Cambodia) Yadov Pleiku (Cambodia) Quy Nhon (Viet Nam)
Southern Southern Bangkok (Thailand) Trat (Thailand) Koh Kong (Cambodia) Kampot
Economic Corridor Coastal (Cambodia) Ha Tien (Viet Nam) Ca Mau City (Viet Nam) Nam Can (Viet Nam)
sub-corridor
Southern Inter- Sihanoukville (Cambodia) Phnom Penh (Cambodia) Kratie (Cambodia)
Economic Corridor corridor link Stung Treng (Cambodia) Dong Kralor (Tra Pang Kriel) (Cambodia) Pakse (Lao
Peoples Democratic Republic) Savannakhet (Lao Peoples Democratic Republic);
links the three Southern Economic Corridor sub-corridors with the EastWest
Economic Corridor
Source: ADB (2 014). Greater Mekong subregion Multisector: development of economic corridors.
Available fromhttp://w ww.adb.org/c ountries/g ms/s ector-activities/m ultisector.
effective and efficient growth of direct investment and production facilities through the
identification of corridors for major transport infrastructure development. This economic
corridor approach to sub-regional development was adopted as a fundamental strategy to
8
accelerate the pace
THE REPUBLIC of GMS
OF THE UNION cooperation and to help
OF MYANMAR NATIONAL realize
EXPORT the regions potential. Three
STRATEGY
TRADE FACILITATION AND LOGISTICS CROSS-SECTOR STRATEGY 2015-2019
corridors were identified as flagship programs under this approach: the North-South
Economic Corridor (NSEC), East-West Economic Corridor (EWEC), and Southern Economic
Corridor (SEC). In 2007, the GMS ministers agreed to expand the program to a total of nine
economic corridors (Figure 2).
The key economic corridors comprising the GMS are highlighted in figure 3.
Figure 2: Nine GMS Economic Corridors
Figure 3: GMS economic corridors
Source: Stone, S. & Strutt, A. (2 009).Transport infrastructure and trade facilitation in the Greater Mekong Subregion.
ADBI Working Paper
Source: ADB.No. 130, p. 10. Tokyo: Asian Development Bank Institute. Available from www.adbi.org/f iles/2 009.01.20.
wp130.transport.infrastructure.trade.facilitation.mekong.pdf.
8
WHERE WE ARE NOW 9
A study on the effectiveness of corridor development facilitation is especially important for Myanmar because
(Banomyong, 2007) showed that shipping cost, time and it is the GMS country most dependent on intra-region-
reliability were all greatly improved during the upgrading al trade, with over 35% of its imports and exports being
of the NorthSouth Economic Corridor.19 Regional trade sourced within the region.20 With respect to its neighbours,
it has therefore suffered disproportionately from the inad-
19. Stone, S. & Strutt, A. (2009). Transport infrastructure and trade equate regional trade facilitation framework.
facilitation in the Greater Mekong Subregion. ADBI Working Paper No.
130, p. 10. Tokyo: Asian Development Bank Institute. Available from
facilitation.mekong.pdf. 20. Ibid. p. 3.
Table 5: Impact of economic corridor development afterNorth-South Corridor upgrading
Source: Stone, S. & Strutt, A. (2 009).Transport infrastructure and trade facilitation in the Greater Mekong Subregion.
ADBI Working Paper No. 130, p. 10. Tokyo: Asian Development Bank Institute. Available from www.adbi.org/f iles/2 009.01.20.
wp130.transport.infrastructure.trade.facilitation.mekong.pdf.
The legacy of closed economic systems has left South-

East Asia with gaps in trade facilitation performance, es-
CURRENT STATE OF TFL
pecially with regards to the ease with which enterprises
can trade goods across borders. Nevertheless, the region As seen in figure 4, Myanmars logistics systems are
has made much progress in recent years, having signifi- currently underdeveloped, and the country was ranked
cantly reduced time to import and export. Additionally, the 133 out of 155 countries in the World Banks LPI in 2012.
costs associated with trading across borders are lower in Myanmars score of 2.37 out of 5 is the lowest of all
the region than in Group of 7countries. Combined with the ASEAN nations.21
continued efforts to enhance regional integration through
the development of the economic corridors, the region
is making great strides towards creating a more attrac-
tive trade environment. Due to Myanmars heavy reliance
upon intra-regional trade, it is of the utmost importance
that its policymakers collaborate with neighbouring coun- 21. Simple average of ASEAN nation scores excluding Brunei
tries in the GMS to ensure continued progress. Darussalam, which had no ranking for 2012.
Figure 4: LPI of ASEAN nations 2012
Source: World Bank Data Bank (2 012). Available from http://d atabank.worldbank.org/d ata/h ome.aspx.
ASEAN Nations excluding Brunei Darussalam, which had no ranking for 2012.
As illustrated in figure 5, all of the sub-indices fall between order to strengthen Myanmars trade environment. With
a score of 2 and 3. Of particular note is the quality of trade respect to regional neighbours, the frequency with which
and transport-related infrastructure, which is the lowest shipments reach consignee within scheduled or expected
scoring sub-index at 2.1. These low scores highlight key time and the Ability to track and trace consignments cat-
areas in which significant improvements are required in egories score the lowest.
Figure 5: LPI and LPI subindicators 2012; Myanmar and ASEAN average
Source: World Bank Data Bank (2 012). Available from http://d atabank.worldbank.org/d ata/h ome.aspx.ASEAN Nations exclud-
ing Brunei Darussalam, which had no ranking for 2012.
WHERE WE ARE NOW 11
Having signed the ASEAN Trade in Goods Agreement, ROAD

Myanmar has agreed to a number of provisions which, if
enacted, will greatly improve trade facilitation with regional Transportation in Myanmar is dominated by 130,000km
neighbours.22 Provisions include: of road networks. 24 Road density is low at 40km per
1,000km2, compared with 480 in Vietnam, 350 in Thailand,
The reduction of unnecessary fees and charges; 200 in Cambodia, and 60 in the Lao Peoples Democratic
The obligation to publish laws and regulations affecting Republic. Only 20% of roads are paved to all-weather
trade online; standards (46% of the 38,000km of core roadways and
Consultations when formulating new rules; 13% of the non-core roadways). Moreover, secondary and
Implementation of the General Agreement on Tariffs local roads tend to be in poor condition. In addition to low
and Trade article VII; road density, Myanmars vehicle density of 18 vehicles
Use of international standards; per 1,000 people is also significantly lower than in neigh-
Facilitated customs clearance (automation and use bouring countries (370 in Thailand and 250 in Indonesia).
of ICT); Furthermore, trade routes from main cities to border trade
Use of risk management practices; stations have deteriorated. The Tamu-Kalewa-Kalemyo-
Advance rulings; Mizoram road to India, for example, cannot be used at
Review and appeals; certain times of the year due to adverse weather.25 Poor
Temporary admissions; road infrastructure also makes it costly and time-consum-
Post-clearance audits; ing to transfer goods from rural communities to transport
Authorized economic operators; and hubs and warehouses in major cities.
The use of a national trade facilitation committee.
Nonetheless, Myanmar does enjoy a strategic position
With regards to paperless trade and cooperation, the along regional transport routes. Roughly 5,000km of in-
agreement calls for automation, a regional single win- ternational highways pass through Myanmar, while other
dow, customs cooperation, trade facilitation and capaci- links, including a 427km segment in the north connect-
ty-building cooperation and differential treatment for less ing China and India, serve as important trade routes with
developed members. The ASEAN-Australia-New Zealand neighbours.26
Free Trade Agreement, to which Myanmar is also a signa-
tory, calls for other provisions such as domestic legislation There are 546 trucking companies currently operating
regarding electronic authentication, and the acceptance in Myanmar.27 All of these entities are small and medi-
of electronic versions of trade documents. um-sized businesses and none of them provide nation-
wide services, instead operating locally. 28This lack of
nationwide trucking fleets results in transportation that is
TRANSPORT often unpunctual and difficult to track. The countrys ve-
hicle fleet is comprised mainly of second-hand 12-wheel
Efficient transportation infrastructure is at the heart of a trucks from Japan that operate at roughly 28 tons of gross
robust trade environment. Accordingly, a main concern weight. These vehicles are slowly being replaced, how-
surrounding trade facilitation in Myanmar is the countrys ever, by 22-wheel trucks from China operating at 50 tons
inadequate transport system, which impedes the move- of gross weight. The greatest expense for operators is
ment of both goods and people, thereby limiting econom- diesel fuel, which accounts for up to 80% of total costs.29
ic activity. While recent investment has focused on major Although driver fees tend to be low they are increasing
highways and railways, both lower level networks and for operators of the new 22-wheel trucks due to surging
linkages between networks are in need of maintenance, demand and the lack of professional certified heavy-truck
development and upgrading.23 drivers.30
24. Ibid. p. 24.

25. Thura Swiss (August 2013). Myanmars Beans and Pulses Trade:
Risks and Prospects, p. 8.
26. ADB (2012). Myanmar in Transition: Opportunities and Challenges,
p. 29.
27. OECD (2013). Multi-dimensional Review of Myanmar, Volume 1.
Initial Assessment, pp. 117118.OECD Development Pathways, OECD
Publishing.
28. ITC (2013). Study on Development of Trade Facilitation, Logistics
22. Duval, Y. (2011). Trade facilitation in regional trade agreements: and Infrastructure. Internal ITC NES background report, pp. 78.
recent trends in Asia and the Pacific, pp. 58. UNESCAP Trade and 29.OECD (2013). Multi-dimensional Review of Myanmar, Volume 1. Initial
Investment Division, Staff Working Paper 02/11. Bangkok: UNESCAP. Assessment, p. 118. OECD Development Pathways, OECD Publishing.
23. ADB (2012). Myanmar in Transition: Opportunities and Challenges, 30. ITC (2013). Myanmar Trade Facilitation & Logistics Sector Profile.
p. 23. Internal ITC NES background report, p. 8.
RAIL es. While some ports are equipped with cargo handling
facilities for bulk commodities such as cement, petroleum
The government expanded the railways by 1,500km to and fertilizer, most river ports are little more than beaches
3,500km between 1988 and 2010, mainly in order to reach with gangplanks. Compared with road and rail transport,
remote regions and facilitate connectivity across all parts this network provides the least expensive freight option,
of the country.31 The high cost of these new lines, how- although facilities are inefficient and seasonal. It should
ever, in conjunction with low traffic volumes, has drained be noted that the quality and availability of safety and
resources so that there are limited funds for maintaining navigation aids need improving.
and upgrading a deteriorating core network. There are
currently 150 container cars, some of which are out of
order, and seven local, independent rail operators.32 The PORTS
busiest routes are those from Yangon to Mandalay and
between Yangon to Yunnan province in China, and the The port system, meanwhile, is governed by the Myanmar
maximum speed of the network is 75km per hour be- Port Authority (MPA). The system is comprised of one
tween Yangon and Mandalay.33 port in Yangon, four on the west coast and four on the
south-east coast, and traffic is comprised largely of ship-
Despite a large increase in country-wide freight traffic (rail ments between Yangon and the coastal ports. According
and non-rail) from 1993 to 2011, freight volumes on rail- to the Ministry of Transport (MoT), roughly 90% of the
ways remained static at roughly 3 million tons.34 Moreover, countrys imports and exports are handled by the port in
the rail networks are plagued by slow travel times and fre- Yangon, which does boast some modern equipment in-
quent delays.35 There are also certain restrictions in place, cluding mobile and tower cranes, container cranes, portal
such as a ban on cargo traffic in morning hours, which cranes, gantry cranes, reach stackers, container forklifts,
contribute to the systems inefficiency.36 Additionally, a towing and container tractors.40 Vessels of up to 167 me-
lack of modernized facilities at stations results in the man- tres in length can access this port, although even larger
ual loading and unloading of cargo, increasing transac- ships may use the Thilawa terminal slightly downstream.
tion times and the risk of cargo damage. Facilities at other ports, however, are pontoon-based and
lacking in mechanized handling.
INLAND WATER The port at Yangon has a container capacity of 400,000

twenty-foot containers per year and is operating at rough-
In addition to road and rail, Myanmar has 5,000 kilometres ly 70% of capacity.41 Volumes doubled over the last eight
of navigable waterways, of which 2,400km comprise the years, reaching 20.4 million tons of cargo in 2011/2012. Of
primary inland network.37 The state-owned Inland Water the 23 international wharves in Yangon, 70% are owned
Transport (IWT) operates 225 powered vessels, 148 non- and operated by private companies. As no bonded ware-
powered vessels, and 39 station pontoons.38 With a ca- housing services are available, shipments must be in-
pacity of 70,000 tons, its tariffs are set below cost by the spected at the ports.42 Export cargo must therefore be
government. Although most of its ships are old, IWT car- consolidated in private warehouses and sent to the con-
ries roughly 28 million passengers and 5 million tons of tainer yard for customs inspections. The lack of appro-
freight shipments per year (2011).39 Although IWT offers priate port facilities at Yangon means that loading and
the majority of river transport options, some small-scale unloading is time-consuming and inefficient.
private operators also offer inland water transport servic-
Fourteen shipping lines and 21 vessels are currently oper-
31. ADB (2012). Myanmar in Transition: Opportunities and Challenges, ating to and from Yangon.43 The ten most important ship-
p. 24. ping companies are Advance Container Line (20% market
32. ITC (2013). Study on Development of Trade Facilitation, Logistics share), China Shipping Line (12%), Ever Green Line
and Infrastructure. Internal ITC NES background report, p. 8. (11%), Orient Overseas Container Line (10%), Samudra
33. Ibid. (8%), Regional Container Lines (6%), and MCC Transport
34. ADB (2012). Myanmar in Transition: Opportunities and Challenges, (6%), IAL (5%), MOL (5%), and Hanjin (5%). All vessels
p. 24.
are foreign and there has thus far been little room for do-
35. Republic of the Union of Myanmar Ministry of Hotels and Tourism
(2013). Myanmar: Tourism Master Plan 20132020, Final Draft Report. mestic participation in international container transport.
and Infrastructure. Internal ITC NES background report, p. 8.
37. ADB (2012). Myanmar in Transition: Opportunities and Challenges, 40. Republic of the Union of Myanmar Ministry of Transport (2013).
p. 24. Services: our services. Available from www.mot.gov.mm/mpa/our_
services.html.
38. Republic of the Union of Myanmar Ministry of Transport
(2013). Services: functions of IWT. Available from www.mot.gov. 41. ITC (2013). Study on Development of Trade Facilitation, Logistics
mm/iwt/services.html. and Infrastructure. Internal ITC NES background report, p. 4.
39. ADB (2012). Myanmar in Transition: Opportunities and Challenges, 42. Ibid. p. 6.
p. 24. 43. Ibid. p. 7.
WHERE WE ARE NOW 13
Figure 6: Myanmar ports
SITTWE
KYAUKPYU
THANDWE
YANGON
PATHEIN
MAWLAMYINE
Port Region/State
Yangon Yangon DAWEI
Sittwe Kyaukphu Thandwe Rakhine

MYEIK
Pathein Ayeyarwady
Mawlamyne Mon
Dawei Myeik Kawthoung Tanintharyi
KAWTHOUNG
Source: Republic of the Union of Myanmar Ministry of Transport (2 013). Services: our services.
Available fromwww.mot.gov.mm / m pa / o ur_services.html.
Myanmars port system is expected to benefit from two airlines operate over 32,000 domestic departures annu-
development initiatives. The Chinese-funded Kyauk Phyu ally, while 23 foreign carriers are responsible for 80% of
SEZ will include a new deep sea port and will serve as international capacity.48
a transport hub for trade with India, Bangladesh and the
Middle East.44 The Dawei SEZ, meanwhile, will establish At the moment, Yangon International Airport is the only
a deep sea port in southern Myanmar.45These two pro- one with cargo handling facilities. In July 2013, it handled
jects and their expected impacts on TFL in Myanmar are 1,119,657 kg (1,120 tons) of cargo.49 Mandalay airport is
detailed further in the section on cross-sector develop- undergoing extensions that will enable it to handle import
ment initiatives. and export cargo by 2015. It should be noted as well that
licensed courier services DHL and EMS also handle 800
kg and 500 kg of freight per day respectively, operating
AVIATION from Yangon International Airport.50
Myanmars aviation network is built around 41 airports46

(only 30 regularly receive commercial flights), of which CROSS-BORDER TRADE
three are international.47 Most international traffic (94%)
is routed through Yangon International Airport, although Cross-border trade is currently operating through 15 sta-
efforts are under way to reduce congestion by promoting tions on the Chinese, Thai, Bangladeshi and Indian bor-
the Nay Pyi Taw and Mandalay airports. Seven national ders.51 The largest of these are the Mu Se border trade
point on the Chinese border and the Myawady border
trade point on the Thai border. Descriptions of key cross-
44. Kyauk Phyu Special Economic Zone (n.d.). Website. Available from
http://kpsez.org. border trade points are presented in table 6.
45. Yen Snaing (2013). NGO raises concerns with Japan over Dawei
SEZ involvement. The Irrawaddy, December 12. Available from www.
irrawaddy.org/business/ngo-raises-concerns-japan-dawei-sez-
involvement.html. 48. Ibid.
46. There are 41 airfields with ICAO/IATA codes, but more than 70 in 49. ITC (2013). Study on Development of Trade Facilitation, Logistics
total. and Infrastructure. Internal ITC NES background report, p. 3.
47. Republic of the Union of Myanmar Ministry of Hotels and Tourism 50. Ibid.
(2013). Myanmar: Tourism Master Plan 20132020, Final Draft Report. 51. Ibid. pp. 1011.
Table 6: Key cross-border trade points
Location Country Characteristics

Mu Se China At 450 kilometres from Mandalay, the route involves curves, mountain paths, and steep
inclines and declines. A border trade zone was established in 2006, and one-stop border
trade service is available. The truck route from Yangon to Mu Se is congested and in poor
condition: travel time from Yangon to Mandalay (750km) is 40 hours, while time from
Mandalay to Mu Se (450km) is 32 hours.
Tamu India At 400 kilometres from Mandalay, this is the only westbound route to India and
Bangladesh. The route is mountainous and often unpaved. As no trucks are allowed,
cargo is loaded onto seats or vehicle roofs. The transit from Mandalay takes 20 hours,
although ongoing construction is expected to reduce this by four to five hours.
Myawady Thailand A total of 460 kilometres from Yangon, this is the closest border to Bangkok and is the
busiest trade point between Myanmar and Thailand. The road is mountainous and in poor
condition. Prior approval for travel is required for safety purposes.
Tachileik Thailand Due to its distance from major trade markets, little cargo is currently passing through this
route. It is, however, a shortcut linking China with Thailand.
Source: ITC (2 013). NES Report: Study on Development of the Trade Facilitation, Logistics, and Infrastructure, pp. 10-11.
CUSTOMS PROCEDURES
out by either the exporter or an agent and accompanied
The Ministry of Commerce (MoC) oversees trade proce- by the following documentation: export licence or permit,
dures and is comprised of the Office of the Minister, the sales contract, invoice, packing list, bank document, ship-
Directorate of Trade, the Department of the Commerce ping instructions or booking note, and other documents
and Consumer Affairs, and the Department of Trade as required. These documents are then to be submit-
Promotion. Entities wishing to import to or export from ted to the Central Registry upon payment of port fees.
Myanmar must first register with the government, at which The documentation is sent by the Central Registry to the
point they will have the right to export, import, conduct Export Section, which will verify the completeness of the
border trade business, distribute locally, apply for a busi- documents and their declaration.
ness passport and receive foreign guests for business
purposes.52 The fourth step is handled by the Export Appraising Unit,
whose role it is to ensure the consistency of the shipment
Before continuing with customs procedures, enterpris- with the Export of Control Order issued by MoC and other
es must first obtain an import or export licence. This re- relevant regulations. If the shipment is compliant, a valua-
quires the submission of a sales contract, data related tion will be performed based on the Free on Board price
to the country of origin, pro forma invoice, samples, and declared on the export licence.
any relevant certifications. It generally takes about seven
working days to obtain the licence, after which it remains The declaration is then returned to the Export Section,
valid for three months. It is possible to extend the licence who will assign it a Free Foreign Exchange Number.
by one month a maximum of two times. Depending on Finally, the Export Declaration form is passed to the
the type of product, the application must be made to the Export Examination Unit, which will perform an examina-
authorities in either Yangon or Nay Pyi Taw. Other rel- tion of the goods and verify the documents and samples.
evant certifications must be applied for at the relevant Finally, if all is in order, the packages are then sealed and
government departments. Once the licence has been shipment may proceed.
obtained, an enterprise can continue with export or im-
port clearance. The procedures for exporting are quite inefficient and they
take an inordinate amount of documents and time when
Six steps are involved in export clearance from Myanmar.53 compared with the requirements of other countries. Table
The first step is the preparation of documents. The 7 provides a comparison with both regional and OECD
Customs Declaration Form 2 (CUSDEC-2) must be filled countries.
52. Embassy of the Republic of Myanmar, Singapore (2013).

Myanmar export/import rules and regulations. Available from
www.myanmarembassy.sg/commercial/myanmar-trade-rules/.
53. FAO (2009). An Analysis of the Myanmar Edible Oil Crops Sub-Sector.
5. At this time no export duty is levied on all of the exported commodity. Then the
declaration and documents are returned to the Export Section to register and stamp the
Free Foreign Exchange No. (FFE No.).
WHERE WE ARE NOW 15
Export Examination Unit at Wharf/container terminal/airport
6. At this point, the Export Declaration is sent to the Export Examination Unit. This Unit
will examine the goods in compliance with order passed down by the Export Assessing
Officer, verify the relevant documents and sample (if any). If found correct the examined
packages or containers are sealed and shipment is allowed.
Figure 7: Myanmar export procedures
Figure 45: Export procedures flow chart
Export Declaration form CENTRAL - Registration

REGISTRY - Check the completion of documents
+ EXPORT - Noting
Supporting Documents SECTION - FFE registration
EXPORT - Checking in accordance with

APPRAISING Export Trade Control Order
UNIT - Assessment
- Issuing Daily/weekly/Monthly Report

COMPUTER
- Data Keeping
EXAMINATION
UNIT WHARF, Physical Examination
CONTAINER,
AIRPORT
Allow Shipment
Source: Ministry of Commerce

Source: FAO (2 009). An Analysis of the Myanmar Edible Oil Crops Sub-Sector.
Table 7: Exporting from Myanmar
Indicator Myanmar East Asia & the Pacific OECD

Documents to export (number) 9 6 4
Time to export (days) 25 21 11
Cost to export (US$ per container) 670 856 1070
Source: World Bank (2 013). Doing Business 2014.
Import procedures are similar, and begin with the com- MoC, packing list, sales contract and other relevant docu-
pletion of the Customs Declaration Form 1 (CUSDEC-1) ments as required by regulation.54 These documents are
by the importer or an agent and the preparation of the submitted to the Central Registry, whose functionaries will
following accompanying documents: original sellers in- verify the completeness and accuracy of the declarations.
voice with bank stamp or foreign exchange exemption
certificate, bill of lading, import permit or licence from the 54. FAO (2009). An Analysis of the Myanmar Edible Oil Crops Sub-Sector.
16 TRADE FACILITATION AND LOGISTICS CROSS-SECTOR STRATEGY 2015-2019 Annexes 193
Cash Section
If all is in order,
6. the documents
After are passed
the CUSDEC-1 hastobeen
the Import computer
finally disposed of systems in order to facilitate
in the Appraising Group and statistical
data analysis.
Section, who will is check the Import Declaration with the The Cash Section, meanwhile,
entered in the computer for compiling foreign trade statistics, the calculations of the will calculate the amount
manifest details inamount
order toofverify consistency. If all is in of duty and tax owed and
duty and tax will be made in the Cash Section. In the meantime the duty collect the revenues.
order, the forms are sent
clerk to declare
will the Appraising
the name Group,
of thewhichimporter and the registration number and date of the
will verify that the goods are imported in compliance
CUSDEC-1, which has been assessed withand Once
ready forduties and of
collection taxes
dutyhave
and tax. been collected, the
trade controls and guarantee the accuracy of details such CUSDEC-1 and other documentation are sent to the ap-
as description, Harmonized System codes, duty and tax propriate wharf/container/airport Appraising Group. The
Wharf/warehouse/container terminal/airport appraising group
rates, quantity and measurements, in order to accurately importer must collect the Delivery Order from the Shipping
7. duty
classify and levy Afteroncollecting
the goods.duties and taxes payable, the CUSDEC-1
Agency with the
Department andrelevant
pay port documents
fees. Theare Customs of-
forwarded to the respective Wharf/Container/Airport Appraising Group by correspondence.
ficers will then verify that the goods are consistent with
The Valuation Unit Meanwhile the importer
will then submit or his after
a valuation agentin- needstheto relevant
take the declaration.
Delivery OrderIf allfrom
is inthe Shipping
order, delivery will be
Agency Department, present the original bill of lading and pay port due. Then
vestigating recorded prices, catalogues and wholesale allowed, but if discrepancies are uncovered, it could lead the Customs
prices where needed. Examination Officers check
The CUSDEC-1 thereturned
is then commoditiestoagainst the declaration
the seizure of goods,and relevant documents.
reassessment and refund, or re-
to the Appraising If any discrepancy
Group and the data is found on examination,
is entered into the itcovery
will lead
of to the detention or seizure of goods, or
duty.
reassessment and refund or recovery of duty as the case may be. As a result of the examination,
if found correct the delivery of goods will be permitted by customs.
Figure 8: Myanmar
Figureimport
46: procedures
Import procedures flow chart
CUSDEC-1 CENTRAL - Checking Completion of Documents

REGISTRY - Registration
IMPORT - Nothing
SECTION - Manifest Clearence Control
+Supporting
APPRAISING VALUATION
DOCUMENTS
GROUP GROUP
- Checking (lmport Trade Control)
- Valuation
- Classification
- Assessment
- Data Keeping
COMPUTER
- Issuing Daily/weekly/Monthly
Statistics report
CASH - Revenue Collection
WARF, WAREHOUSE, CONTAINER - Inspection/Examination

TERMINAL AIRPORT - Re-assessment
Delivery of goods
Source: Ministry of Commerce
Source: FAO (2 009). An Analysis of the Myanmar Edible Oil Crops Sub-Sector.
As with exports, the procedures for importing are quite

inefficient. Table 8 provides a comparison with both re-
gional and OECD countries.
WHERE WE ARE NOW 17
Table 8: Importing into Myanmar
Indicator Myanmar East Asia & the Pacific OECD

Documents to import (number) 9 7 4
Time to import (days) 27 22 10
Cost to import (US$ per container) 660 884 1090
Source: World Bank (2 013). Doing Business 2014.
SPECIAL ECONOMIC ZONES ECONOMIC CORRIDORS

In 2011 the Government of Myanmar passed the Myanmar Through its work with the ADB and the GMS, Myanmar
Special Economic Zone Law.55 Its stated goals are to al- has been placing an increased emphasis on the devel-
low for the establishment of SEZs that will: opment of economic corridors. Improvements that were
made to the East-West Economic Corridor, for exam-
1. Stimulate foreign investment; ple, cut an average of six days from regional transport
2. Develop economic momentum; times. As the only direct continuous land route between
3. Develop industrial and high-tech production; the Indian Ocean and the South China Sea, the corridor
4. Improve the quality of processing, trading and increased transport efficiency by bypassing the straits
services; of Malacca. Additionally, the project has strengthened
5. Enable the population to learn and transfer high-tech cooperation among the applicable countries: Myanmar,
skills and technologies; Thailand, the Lao Peoples Democratic Republic and
6. Stimulate employment opportunities; and Viet Nam.
7. Stimulate the development of infrastructure.
Myanmar continues to look towards corridor develop-
Over the last few years, SEZs have been used to attract ment as the model for enhancing both trade and eco-
FDI and promote economic development through various nomic cooperation. With a focus on supporting networks
tax and regulatory incentives. Of note are the Dawei SEZ, of geographically clustered infrastructure and enterpris-
Thilawa SEZ and Kyauk Phyu SEZ. Aside from allowing es, Myanmar hopes to better connect stakeholders to
for the long-term leasing of land to foreign investors, the both production and demand domestically and within
relevant legislation allows for exported items to be exempt the greater region.
from commercial tax and value added tax for five years,
followed by reduced rates thereafter. Imported materials
and machinery are also exempt from import tax and cus- INSTITUTIONAL
toms duties for five years. During the following five years,
these levies are reduced by 50% of their normal rate.
PERSPECTIVE
Trade support institutions (TSIs) are institutions that have
These zones have thus far proven to be successful tools an interest in, and bearing on, the cross-sectors export
for facilitating competitive industry development. Jobs development. Broadly, the TSIs providing important ser-
are created by both the enterprises which are attracted vices to Myanmars TFL cross-sector can be categorized
the zones for their incentive programmes and the busi- in the following support areas:
nesses that cater to them. Moreover, they stimulate the
arrival of skilled labour and facilitate both knowledge and Policy support network
technology transfer between foreign agents and the local Trade services network
population. They have also been instrumental in allow- Civil society network.
ing Myanmar to develop the basic infrastructure needed
to support economic activity, which includes roads, tel- Tables 9 to 11 identify the main TSIs whose service de
ecoms services and power services. As such, the zones livery affects the TFL framework in Myanmar. An assess-
have played an integral role in improving transport link- ment of the TSIs along four key dimensions coordination,
ages between Myanmar and some of its most important human capital, financial sustainability and advocacy is
trading partners. provided. The ranking (high/medium/low) for each TSI
was selected in the context of service delivery of the TSI
relative to trade facilitation. In other words, the assess-
ment was conducted based on an evaluation of stake-
55. Union of Myanmar State Peace and Development Council (2011).
The Myanmar Special Economic Zone Law: The State Peace and holder views regarding the effectiveness of TSIs and their
Development Council Law No. 8/2011. respective roles in Myanmars TFL environment.
POLICY SUPPORT NETWORK
These institutions represent ministries and competent au-

thorities responsible for influencing or implementing poli-
cies at the national level.
Table 9: Myanmar TFL policy support network
Name of Human Financial

Description of TSI and services provided Coordination Advocacy
institution capital sustainability
MoT Regulates multimodal transport and logistics (air M L L L
and maritime). Services include warehousing, freight
forwarding, maritime transport services, air transport
services and inland water transport.
Ministry of Regulates rail and road transport on land. Issues L L L L
Rail Transport operating licences for commercial vehicles.
(MoRT)
Ministry of Regulates road and bridge construction. (Build- L M M L
Construction Operate-Transfer & Public-Private Partnership (PPP))
(MoCon)
Ministry of Regulates fiscal, banking and financial insurance M M M M
Finance and affairs, and collects taxes and revenues. Tasked with
Revenue Customs and issues licences.
(MoFR)
MoC Manages trade policy, trade regulation, trade M M M H
promotion and information, education and facilitation.
Administers trade registration, export/import licences,
rules of origin, inspection and testing on goods for
export, and transit rights.
Ministry of Sets policy on SEZs, national economic development, M M M L
National trade-related investment and foreign economic
Planning and relations. Services include collecting and analysing
Economic statistical data (Central Statistics Organization) and
Development company registration.
Central Bank Sets foreign exchange and monetary policy, and L M M M
interest rates. Services include issuing banknotes and
banking licences, and managing electronic payment
methods.
Ministry of Sets standardization policy and quality standards L M L L
Science and (e.g. technical barriers to trade, sanitary and
Technology phytosanitary) and control. Provides research and
development services.
Ministry of Manages quality control related to health issues L L L L
Health (Food and Drug Administration) and quarantines.
Ministry of Manages quality control for sanitary and L L L L
Agriculture phytosanitary standards.
and Irrigation
Ministry of Tasked with border area and ethnic group L L L L
Border Affairs development. Services include support services for
road and bridge construction and health education.
WHERE WE ARE NOW 19
TRADE SERVICES NETWORK
These institutions or agencies provide a wide range of are concerned with the delivery of trade and export solu-
trade-related services to both government and enterpris- tions within a developing country.
es. These institutions support and promote sectors and
Table 10: Myamar TFL trade services network
Description of TSI and services Human Financial

Name of institution Coordination Advocacy
provided capital sustainability
Myanmar Foreign Trade Deliver state and commercial banking L L L L
Bank, Myanmar Investment services, and facilitate monetary
and Commercial Bank, transactions and foreign exchange.
Myanmar Economic Bank
Customs Administration Handles customs procedures. Its M M M L
mission is to achieve trade facilitation
by simplifying customs procedures,
executing effective customs controls
and collecting relevant revenues.
MPA Tasked with administering coastal ports. M L L M
Provides the following services:
Loading;
Discharging and storage of cargoes;
Receipt and delivery of transit
cargoes;
Pilotage;
Diving services;
Tug services;
Firefighting;
Port security;
Fresh water supply;
Ship repairs;
Shipping agency services.
Union of Myanmar Chamber of Commerce representing M M M M
Federation of Chambers the private sector, tasked with
of Commerce and facilitating publicprivate dialogue,
Industry(UMFCCI) advocating for private sector interests,
and participating in efforts for national
economic development.
Myanmar International Engages in foreign relations and M L L L
Freight Forwarders offers training courses and member
Association (MIFFA) certificates.
Myanmar Customs Brokers Provides customs clearance services. M M M L
Association (MCBA)
Myanmar Container Truck Offers a one-stop shop for container trans- M L L L
Association port and sets tariffs for container transport.
Highway Transport Carriage of goods. L L L L
Association
Myanmar Mercantile Offers training certification and M L L L
Marine Development arbitration services.
Association (MMMDA)
Mingalardon Cargo Service Provides air cargo handling services. L M M L
Myanmar Coastal-Cargo Carriage of goods. M L L L
Shipping Association
Myanmar Shipowners Carriage of goods. L L L L
Association
Myanmar Citizens Bank Licence fees payment. M L L L
Table 11: Myanmar TFL civil society network
Human Financial
Name of institution Description of TSI and services provided Coordination Advocacy
capital sustainability
Myanmar Maritime Engaged in education and teaching in maritime M M L M
University transport, ship and port management,
and logistics. Offers a diploma course.
Central Institute Engages in professional training in driving L M L L
of Transport and for rail and road transport. Offers professional
Communications training certificates.
Civil Aviation Provides flight training and offers domestic M L L L
Training Institute and international pilot licences.
Myanmar Mercantile Offers a bachelor degree for mercantile M M L M
Marine College marines.
CIVIL SOCIETY NETWORK and engage in effective communication with the business
community in order to foster a healthier trade environment.
ANALYSIS OF THE TRADE SUPPORT NETWORK
Another issue is the low level of human capital and finan-
These institutions are not explicitly engaged in the sec- cial sustainability. As these institutions will be tasked with
tors trade-related activities. However, they are opinion anchoring and diffusing cross-sector knowledge, it is of
leaders representing specific interests that have a bear- the utmost importance that their staffs are adequately
ing on the sectors export potential and socioeconomic trained and ready. Financial sustainability is also neces-
development. sary, as the success and sustainability of this strategy will
depend upon the ability of TSIs to disseminate information
Despite the large number of institutions active in the TFL and provide quality services over time.
cross-sector, an analysis of their abilities indicates that
their capacities are inadequately developed. Of particu- Lastly, the low level of advocacy is an issue that must be
lar concern is the lack of coordination among themselves addressed. An effective TFL framework requires that pri-
and with client enterprises. This lack of coordination is es- vate sector interests are considered against the backdrop
pecially disconcerting in the case of MoT, MoRT and MoC. of a changing global trade environment. Enterprises must
An effective cross-sector depends to a large extent on the therefore be able to rely on TSIs to disseminate updated
ability of these lead ministries to coordinate their efforts information and advocate on their behalf.
WHERE WE ARE NOW 21
Table 12: Perception of Myanmars TFL TSIs capacity versus influence
Capacity of institution to respond to sectors needs

Low High
MoT MoFR
MoCon Ministry of National Planning and Economic
Central Bank Development
Myanmar Foreign Trade Bank MoC
Myanmar Investment and Commercial Bank UMFCCI
Myanmar Economic Bank Myanmar Maritime University
Customs Administration
High MPA
Myanmar Container Truck Association
MMMDA
Myanmar Coastal-Cargo Shipping Association
Level of
influence Myanmar Citizens Bank
on the Civil Aviation Training Institute
sector Myanmar Mercantile Marine College
MoRT MCBA
Ministry of Border Affairs Mingalardon Cargo Service
Ministry of Agriculture and Irrigation
Ministry of Health
Ministry of Science and Technology
Low
MIFFA
Highway Transport Association
Myanmar Shipowners Association
Central Institute of Transport and
Communications
CROSS-SECTOR through road and inland waterway links across the west-
ern Chin state of Myanmar. Not only will the project con-
DEVELOPMENT INITIATIVES nect Myanmar with northern India and greatly enhance
domestic inland transport capacities, but the route be-
Following the political changes that have set Myanmar on tween Kolkata and Sittwe will be reduced dramatically,
the course to more open participation in global trade, both thereby improving efficiency and reducing transport costs
donors and the government have recognized the impor- with India.
tance of improving the TFL environment. A better func-
tioning cross-sector will allow Myanmar to fully leverage Another development is the Kyauk Phyu SEZ, which
its historic opportunity for regional and global economic is funded by the Chinese Government and includes a
integration. As a result, a number of relevant interventions deep sea port. The zone will become a transport hub
are either underway or in planning. for Chinese energy products and its infrastructure could
serve to stimulate trade activity and improve transport
One such initiative is the Kaladan Multi-Modal Transit links to India, Bangladesh and Middle Eastern markets.57
Transport Project, the US$214 million budget of which In conjunction with the SEZ, China is looking to connect
is being funded by the Indian Government.56 The project the zone to Yunnan province via a rail network that is es-
seeks to improve bilateral trade between Myanmar and timated to cost around US$20 billion. The project would
India and has an expected completion date in 2015. The see China build and operate the project for 50 years, at
initiative will connect the Indian port of Kolkata with the which point it would return to Myanmar control. It should
Myanmar port of Sittwe, and then continue to connect be noted, however, that citizens, local activists and an
Sittwe with the north-eastern region of Mizoram in India environmental non-governmental organization (Earth
56. Thura Swiss (August 2013). Myanmars Beans and Pulses Trade: 57. Kyauk Phyu Special Economic Zone (n.d.). Website. Available from
Risks and Prospects. http://kpsez.org.
Rights International) have expressed concern over a lack corridors into economic corridors. ADB provides tech-
of transparency and possible social and environmental nical assistance and studies that aid the development
impacts of both of these projects.58,59 processes. It prepares studies and strategies to aid corri-
dor development; organises forums and working groups;
In addition, the Dawei SEZ is expected to serve as a re- helps mobilize funds; and provides technical assistance
gional transport hub located 350km west of Bangkok. for feasibility studies, engineering studies, establish-
Development plans foresee the construction of a deep- ment of PPPs and identification of possible regulatory
water seaport, a 7,000 megawatt coal plant, and other arrangements.
industrial and transport-related infrastructure. The original
developer was recently precluded from the project, and Another initiative is the Network for Knowledge Transfer
as such Myanmar is searching for international investors on Sustainable Agricultural Technologies and Improved
and developers, namely in Japan and Thailand.60 As with Market Linkages in South and South-East Asia (SATNET)
Kyauk Phyu however, protestors have identified a num- project funded by the European Union and implement-
ber of concerns. In particular, the Dawei Development ed by the Centre for Alleviation of Poverty through
Association claims that the project will force the relocation Sustainable Agriculture. The project seeks to facilitate
of farmers and lead to heavy industrial pollution.61 knowledge transfer in sustainable agricultural econom-
ics and sector-applicable trade facilitation while improv-
The ADB, meanwhile, has approved a Trade Facilitation ing market linkages.64 In Myanmar it specifically focuses
Support for ASEAN Economic Community Blueprint on facilitating the export of mango to China and rice to
Implementation (Myanmar) project, to be funded by the West Africa, and the import of palm oil from Malaysia.65
Japan Fund for Poverty Reduction with US$225,000. This
small-scale technical assistance project seeks to sup-
port a broader ADB project of trade facilitation in Asia COMPETITIVENESS
and enhance the capacities of the Myanmar Customs
Administration to improve trade facilitation.62
CONSTRAINTS
This section identifies the most important constraints af-
Moreover, Myanmar has participated in the ADB GMS fecting the TFL function in Myanmar. Constraints are iden-
programme of subregional economic cooperation.63 tified along three dimensions policy, institutional and
Since 1992, this programme has helped to implement enterprise.
transport, energy, telecom, trade and other projects with
the help of ADB and outside donors. The Cross-Border Policy issues refer to legislative and regulatory issues
Transport Agreement, which was joined by Myanmar in that currently limit the effective functioning of the cross-
2003, helps streamline regulations and reduce trade bar- function in line with international best practice.
riers in the region. Some areas covered by the agreement Institutional constraints refer to supply-side issues
include single window customs inspection, cross-border related to the service delivery of TSIs to enterprises;
movement, transit traffic regimes, vehicle requirements, specifically in terms of the capacities and resources
reciprocal commercial traffic rights and infrastructure available to the institutions for achieving effective ser-
standards. vice delivery.
Enterprise constraints refer to demand-side issues
The programme also helped form an Economic Corridors related to TFL infrastructure.
Forum in 2008 with the goal of transforming transport
58. Eleven Myanmar (2013). Activists criticise lack of transparency on

China railway project, 18 July. Available from www.elevenmyanmar.
com/index.php?option=com_content&view=article&id=2801:activists-
criticise-lack-of-transparency-on-china-railway-project&catid=44:national
&Itemid=384.
59. Earth Rights International (2013). Shwe gas campaign.
Available from www.earthrights.org/campaigns/shwe-gas-campaign.
60. Global Post (2013). Myanmar revises plan for developing Dawei
SEZ. Xinhua News Agency, 2 December. Available from www.globalpost.
com/dispatch/news/xinhua-news-agency/131202/myanmar-revises-
plan-developing-dawei-sez.
61. Yen Snaing (2013). NGO raises concerns with Japan over Dawei
SEZ involvement. The Irrawaddy, December 12. Available from www.
irrawaddy.org/business/ngo-raises-concerns-japan-dawei-sez- 64. SATNET Asia (2012). About Us. Available from www.satnetasia.
involvement.html. org/About_us.html.
62. ADB (2013). Trade Facilitation Support for ASEAN Economic 65. SATNET (2013). Overview of the SATNET Project and Introduction
Community Blueprint Implementation (Myanmar): Project Data Sheet. to Business Process Analysis (BPA) as a Tool for Trade Facilitation.
63. ADB (2013). Greater Mekong subregion. Available from www.adb. PowerPoint presentation given at the InterContinental Hotel, Phnom
org/countries/gms/main. Penh, Cambodia, 19 April 2013.
WHERE WE ARE NOW 23
POLICY ISSUES (L EGISLATIVE)
Box 2: Policy issues affecting TFL in Myanmar
The absence of an integrated transport development strategy hinders coordination

and cross-sector development.
Limited participation of the private sector limits quality and efficiency.
Government price subsidies and fixed tariffs distort incentives.
Support for safety is limited.
Advance income tax payments place a burden on exporters.
THE ABSENCE OF AN INTEGRATED maintaining roads. However, it is not involved in vehicle

TRANSPORT DEVELOPMENT STRATEGY regulation or road safeties, which are closely intertwined.71
HINDERS COORDINATION AND CROSS-
SECTOR DEVELOPMENT The lack of central oversight, together with unclear re-
sponsibilities, can lead to various inefficiencies. In some
The Government of Myanmar has thus far not developed instances agencies may spend resources duplicating ef-
an integrated strategy that addresses the countrys trans- forts or engage in activities for which they have limited ex-
port needs in a coordinated manner. In addition to the pertise, while the population is faced with a complex and
accompanying lack of central control and planning, one disjointed set of regulations with which they must comply.
of the key results of such an absence is the fragmented In such an environment, a coherent strategy for the im-
institutional structure that governs various parts of the provement of transportation and logistics that is effectively
national transportation network with limited clarity and able to allocate resources will be elusive.72
little scope for coordination.66 Indeed, transportation is
managed by six ministries and a variety of local commit-
tees. These institutions include MoT, MoRT, MoCon, the LIMITED PARTICIPATION OF THE PRIVATE
Ministry for Progress of Border Areas and National Races SECTOR LIMITS QUALITY AND EFFICIENCY
and Development Affairs, the Ministry of Defence and the
Ministry of Home Affairs; and the Yangon, Mandalay and Although some private enterprises do participate, the
Nay Pyi Taw city development committees.67 majority of transport infrastructure is constructed, main-
tained and operated (where applicable) by government
While each authority is tasked with overseeing a particular agencies.73 In addition, state-controlled transport opera-
piece of the transport network, no agency is responsible tors have pushed out private enterprises from the major-
for oversight or responsibility for the national transport ity of the subsectors. While most public transport works
sector as a whole.68 In addition, the various agency man- are undertaken by the government, one area that has
dates are not clearly defined and often overlap.69 An seen some degree of private sector involvement is that
example of this is the governance of road networks and re- of road construction and maintenance. Roughly 8,000km
lated activities: MoCon, MoRT and MoT all operate in this of roadways have been built and maintained over the last
space.70In other instances, agencies tasked with one as- two decades through concession agreements such as
pect of the transportation network have no authority or in- build-operate-transfer, and while the tolls are set by the
put over regulations that directly affect their core mandate. government, many of these projects seem to be economi-
MoCon, for example, is responsible for constructing and cally viable.
66. ADB (2012). Myanmar: Transport Sector Initial Assessment. Manila:

71. Ibid.
ADB.
72. OECD (2013). Multi-dimensional Review of Myanmar, Volume
67. Ibid.
1. Initial Assessment, p.137. OECD Development Pathways, OECD
68. Ibid. Publishing.
69. Ibid. 73. ADB (2012). Myanmar: Transport Sector Initial Assessment. Manila:
70. Ibid. ADB.
Nevertheless, there is still much room for increased pri-

vate sector participation, especially in the rail, inland
water and civil aviation subsectors. Over the years, the
financial autonomy of the departments managing these
operations has diminished, and today they operate inef-
ficiently. Planning, service delivery, asset management,
financial management and planning have all deteriorated
and would greatly benefit from increased participation of
the private sector.
GOVERNMENT PRICE SUBSIDIES

AND FIXED TARIFFS DISTORT INCENTIVES
The majority of transport subsectors are dominated by

state enterprises that operate on a non-commercial ba-
sis.74 Government subsidies and tariffs that are fixed be-
low market value, or even cost, have squeezed private
operators out of the market.75 This has limited competition
and private sector investment, and often led to poor ser-
vice quality and asset maintenance. Indeed, the limited
revenues dictated by fixed tariffs are often not adequate
for the maintenance of basic networks. A prime example
is the inland waterway network, where a lack of financial
resources has resulted in inadequate dredging that limits
the navigability of primary routes during low water season.
Subsidies, meanwhile, which are often used to comple-
ment the low tariffs, distort financial management and limit
the practice of cost-benefit planning.
SUPPORT FOR SAFETY IS LIMITED76
Statistics show that the rate of roadway fatalities in transportation networks. As such, cross-sector support
Myanmar is much higher than that of its regional neigh- should also include the development of comprehensive
bours, despite the fact that road density in Myanmar is approaches to transport safety.
lower. The Word Health Organization estimates that in
2007 there were 15.7 fatalities per 10,000 vehicles, much
higher than in other countries such as Thailand (4.9), Viet ADVANCE INCOME TAX PAYMENTS
Nam (5.6) and Australia (1.1). Not only does this have sig- PLACE A BURDEN ON EXPORTERS
nificant social cost, but a United Nations Development
Programme study in 2003 estimated that road accidents Shippers are required to provide an advance payment on
had a cost of roughly 3% of gross domestic product. income tax of 2% throughout the year based on invoice
values.77 This requirement directly increases the cost of
Despite the existence of a road safety programme that engaging in trade as well as the risks of doing business,
seeks to bring various government agencies together, as a deduction is only provided once a year in accord-
there has thus far been little improvement in safety. While ance with annual income declarations. Not only must
the effects are less evident, safety issues also exist in firms find advance funding for such a tax, which is difficult
other transport networks due to poor maintenance. Inland due to insufficient access to finance, but this cash could
waterways, for example, have limited draft due to inade- have otherwise been used for investment or as a cushion
quate dredging. These various risks must be addressed in the event of unexpected costs or opportunities. This
as the government initiates strategies for modernizing the tax environment can also act to discourage new compa-
nies from engaging in export, as the financial burden may
make new engagements untenable. Eliminating this tax,
p. 24.
or at least allowing for more frequent deductions, would
facilitate a more dynamic environment for exporters.
ADB.
76. Ibid. 77. NES third consultation.
WHERE WE ARE NOW 25
INSTITUTIONAL ISSUES
(SUPPLY-SIDE)
Box 3: Institutional issues affecting TFL in Myanmar
Inadequate port facilities and cargo handling equipment result in limited capacities
and quality of service.
The lack of inland container depot capacities decreases efficiency
and increases costs and risks.
Lack of automated scheduling leads to delays in port clearance.
Lack of bonded warehouses diminishes export efficiency.
The absence of EDI inhibits effective trade facilitation.
Paper-based and burdensome export customs procedures increase costs, risks and
turnaround time.
The lack of a cold chain management system diminishes opportunities for export expansion.
The lack of a domestic cargo manifesting system for truck and train fleets hinders efficiency
and security.
Insufficient skilled staff at freight forwarders and customs brokers limits service capacities.
Rail networks are underused for freight transport.
Inadequate road networks limit connectivity.
There is limited inland waterway development.
Burdensome business procedures increase costs and risks.
INADEQUATE PORT FACILITIES AND CARGO hindered by the lack of automated scheduling of contain-
HANDLING EQUIPMENT RESULT IN LIMITED ers for x-ray scanning.81 It should also be noted that road
CAPACITIES AND QUALITY OF SERVICE access to ports is inadequate and should be improved.
Although a direct access road to the port of Yangon was
Myanmars port facilities are inadequate in their size, recently completed, the terminal is still subject to traffic
equipment and service capacities. Water draft is restricted jams and heavy congestion.82 Together, these inadequa-
to nine metres in Myanmar International Terminal Thilawa cies result in increased waiting and turnaround times as
and only eight metres in Yangon, limiting the size of ves- well as a higher incidence of damaged goods.
sels that can be served.78 There are no adequate port
facilities for loading and unloading of freight and there is
no automated cargo handling.79,80 Manual handling drasti- THE LACK OF INLAND CONTAINER DEPOT
cally reduces efficiency while at the same time increasing CAPACITIES DECREASES EFFICIENCY
the likelihood that goods may be damaged as they are AND INCREASES COSTS AND RISKS
processed. Equipment for manual handling is also lim-
ited, as workers must use mobile cranes in the absence While there are some inland container depots, those that
of gantry cranes. exist are not easily accessible by all modes of transport.83
In addition, space at these facilities is tight and an ab-
Moreover, the ports lack sufficient capacity for physi- sence of container management systems significantly
cal inspections, which are limited to a maximum of 20 diminishes the reliability and efficiency with which these
containers at a time. Efficient cargo processing is further
78. NES third consultation.

79. ADB (2012). Myanmar in Transition: Opportunities and Challenges, 81. NES third consultation.
p. 25. 82. ITC (2013). Study on Development of Trade Facilitation,
80. ITC (2013). Study on Development of Trade Facilitation, Logistics Logistics and Infrastructure. Internal ITC NES background report.
and Infrastructure. Internal ITC NES background report. 83. NES third consultation.
warehouses operate.84 While containers at inland con- no bonded warehouses.87 As a result, cargo destined for
tainer depots are generally provided by the shipping op- export must be consolidated in a private warehouse, sent
erators, congestion and poor organization often lead to a to the container yard and inspected by Customs.88 Not
shortage; indeed, containers of different carriers are not only does this decrease the flexibility with which exporters
separated. None of the depots maintain an adequate yard can operate but it also directly contributes to the conges-
plan, nor do they regularly track container movements. tion, confusion and delays experienced at port clearance
This, together with the fact that the depots operate above terminals.
capacity, often stacking up to eight containers, leads to a
number of difficulties including significant delays.
THE ABSENCE OF EDI INHIBITS EFFECTIVE
Containers that cannot be located, require too much effort TRADE FACILITATION
to move, or which are damaged (a frequent occurrence),
often result in the exporter having to obtain a new con- EDI, which facilitates the transfer of electronic data be-
tainer number and set of documents, thereby restarting tween agencies, companies, and/or countries, is an im-
the process of requesting a new container.85 As a result, portant component of an effective logistical environment.
the entire process can take up to a day and result in sig- In particular, Myanmars warehouse, Customs depart-
nificant delays, costs and uncertainty. Resolving these ments and port facilities suffer due to their lack of EDI im-
deficiencies by expanding capacity, introducing ICT tools plementation. EDI capabilities would significantly reduce
and implementing proper inventory management prac- the burdens and risks associated with the paper-based
tices would result in a much more transparent and stable documentation that dominates customs procedures,89
logistical environment. while also providing a vital foundation for effective in-
ventory management at warehouses and during cargo
handling. EDI would be particularly helpful at ports, as
LACK OF AUTOMATED SCHEDULING LEADS it would allow instantaneous communication between
TO DELAYS IN PORT CLEARANCE all actors in the customs clearance process and reduce
the unnecessary number of forms and documentation,
The lack of automated scheduling for container clearance thereby saving time and reducing the risk of error.
further complicates time-consuming handling and collec-
tion procedures.86 The result is an inefficient system with
complicated queuing that operates on a first come, first PAPER-BASED AND BURDENSOME EXPORT
served basis. This causes significant delays as exports PROCEDURES INCREASE COSTS, RISKS
clear ports and airports. Not only do such delays result AND TURNAROUND TIME
in opportunity costs for exporters, there is also the poten-
tial for them to result in both direct costs and the loss of The World Bank ranked Myanmar 113 for trading across
perishable items. Indeed, it has a significant impact on borders.90 Importing and exporting require nine docu-
an exporters ability to effectively manage inventory and ments (as opposed to the regional average of seven for
shipping procedures and to reliably deliver goods to de- import and six for export, and the OECD average of four
manding markets. A modern trade facilitation environment for both import and export), and take 27 and 25 days re-
must allow enterprises to reliably meet the demands of spectively. This is significantly above both regional and
foreign businesses in a cost-efficient manner. As such, OECD averages. Indeed, preparing and submitting the
it is crucial that Myanmar adopt automated scheduling required documents takes an average of 17 days for ex-
practices in order to reduce congestion, waiting times port and costs US$225.
and uncertainty.
One of the key bottlenecks to the export process is the
lack of ICT systems. Not only are a minimum of six docu-
LACK OF BONDED WAREHOUSES ments required, but all of them are paper-based.91 The
DIMINISHES EXPORT EFFICIENCY only electronic step in the export licensing process is the
online application for an export licence, but even this is at
With the exception of the special permission granted to
facilitate cold storage for fish, customs clearance is not 87. NES third consultation.
available outside of ports and airports and Myanmar has 88. ITC (2013). Study on Development of Trade Facilitation,
Logistics and Infrastructure. Internal ITC NES background report.
89. Ksoll, C., Myint, A.K. & Lwin, T.G. (2013). Business Process
Analysis: Export of Rice and Mango, and Import of Palm Oil in Myanmar.
84. Ksoll, C., Myint, A.K. & Lwin, T.G. (2013).Business Process Analysis: SATNET Asia.
Export of Rice and Mango, and Import of Palm Oil in Myanmar. SATNET 90. World Bank (2013). Doing Business 2014.
Asia.
91. Ksoll, C., Myint, A.K. & Lwin, T.G. (2013). Business Process
85. Ibid. Analysis: Export of Rice and Mango, and Import of Palm Oil in Myanmar.
86. NES third consultation. SATNET Asia.
WHERE WE ARE NOW 27
times negated by the poor Internet connections outside THE LACK OF A DOMESTIC CARGO
of major urban areas. After the application is approved, MANIFESTING SYSTEM FOR TRUCK
the exporter must retrieve a hard copy of the approved AND TRAIN FLEETS HINDERS EFFICIENCY
application from MoC and present it to the Export Section AND SECURITY
for valuation, where, if all is in order, the licence will be is-
sued. Throughout this process, limited office hours restrict The lack of a modern transit facilitation policy, and the
the efficiency of the process and diminish the capacity for resulting non-existence of a cargo manifest system,
efficient problem resolution. makes it more difficult to verify the transport and delivery
of goods.94 The absence of a standardized system in-
Obtaining customs clearance is similarly difficult. While creases the likelihood of oversights in both delivery and
the exporter can submit an online application to MoC for customs procedures. A standard manifest would instead
an export declaration, once again the remainder of the allow for a more efficient and timely transport of goods,
steps are paper-based.92 The Customs offices pass the while diminishing the risk of inaccurate deliveries or cus-
physical documents through five different departments toms oversights. Moreover, the prevalence of localized
for verification. Once approved, one of the key delays ground transport services often makes it necessary to
in the process is appraisal. This seems to be due to un- change carriers.95 Standard manifests would increase the
derstaffing, together with the fact that Customs must use efficiency of these transfers while at the same time reduc-
the official exchange rate, which is only set at 10a.m. This ing the risk of misplacing inventory.
means that appraisals cannot be confirmed until after this
time, despite the fact that the offices may be open earlier.
INSUFFICIENT SKILLED STAFF AT FREIGHT
Once an export declaration has been attained, the rel- FORWARDERS AND CUSTOMS BROKERS
evant documents must be submitted at the port terminal. LIMITS SERVICE CAPACITIES
A gate pass is issued and the container can proceed to
the Customs office for inspection and final processing. Support staff lack sufficient capacities in logistics, docu-
mentation, cargo handling, insurance, and transport man-
These delays, together with the human resources required agement practices. These shortcomings impede their
to engage in the process, lead to both uncertainty and ability to provide cost- and time-efficient services in line
costs. Significant gains could be made if the documents with best practices, and to adopt new practices and ser-
and procedures for their submission were simplified and vices in line with a changing global trade environment.
then streamlined through a licensing process that lever- In general, there is a lack of knowledge with regards to
ages ICT capacities. Data interchange between depart- best practices and staff would benefit from trainings and
ments and offices would greatly reduce the costs and networking opportunities that would facilitate knowledge
complexity of all export procedures, from licensing to enhancement.96 It should be noted that MIFFA has its own
clearance. logistical training centre and that efforts are being made
through both the centre and training of trainer courses
to ensure adequate human resource capacities at for-
THE LACK OF A COLD CHAIN MANAGEMENT warders and brokers and within relevant government
SYSTEM DIMINISHES OPPORTUNITIES agencies.97
FOR EXPORT EXPANSION
Myanmar has an inadequate cold chain management RAIL NETWORKS ARE UNDERUSED
system.93 Guaranteeing consistent temperatures as a FOR FREIGHT TRANSPORT
product progresses through the value chain is an integral
part of ensuring basic health and safety as well as compli- Railways are still subject to a state monopoly and there
ance with international regulations. Without a reliable sys- has been limited investment in upgrading and maintain-
tem, it will be impossible to expand certain sectors, such ing the core rail network.98The inadequate infrastructure
as fish exports, due to regulatory barriers. Moreover, the also fails to provide access to remote areas. Freight man-
lack of a cold chain places the domestic population at in- agement services are poor and inefficient, and rail trans-
creased risk of illness, thereby diminishing social welfare.
94. NES third consultation.
95. OECD (2013). Multi-dimensional Review of Myanmar, Volume 1. Initial
Assessment, p. 117. OECD Development Pathways, OECD Publishing.
ADB.
and Infrastructure. Internal ITC NES background report.
92. Ibid. 98. OECD (2013). Multi-dimensional Review of Myanmar, Volume1. Initial
93. NES third consultation. Assessment, p. 137.OECD Development Pathways, OECD Publishing.
port suffers from long travel times and frequent delays. under which it is managed by the government. Indeed, a
Delays are the result of both weak operating procedures variety of agencies have overlapping mandates and the
as well as slow operating speeds that result from limited lack of central control and planning has led to a number
investment in the upgrading of basic infrastructure such of inefficiencies. In addition, the fragmented institutional
as track renewal.99 Indeed, the challenges and extent of governance has resulted in, at times, illogical divisions of
low investment are highlighted by the fact that over 25% responsibilities. This is complicated by budgetary con-
of operating locomotives are more than 40 years old.100 straints. The majority of funding for the network is general-
ly earmarked for new road construction which is intended
Moreover, inadequate facilities at stations result in the to increase the connectivity of more remote areas of the
manual handling of cargo, thereby increasing the risk of country. This results in limited funding for maintenance of
cargo damage.101 With regards to service, the absence the core road network. It should be noted that, for the mo-
of domestic container owners (both public and private), ment, the limited traffic volumes means that current levels
means that enterprises must rely upon foreign entities. of maintenance are deemed adequate. Even so, planners
Lastly, Myanmars railways use a narrow gauge track that must shift their focus towards cost-benefit analysis and in-
does not conform to international standards.102 The result crease their capacities to prioritise investment, especially
is that there is no interoperability with bordering countries. in light of projected increases in traffic.
The lack of interoperability in the rail system increases
both the time and cost of international freight shipments
by train, as goods must be transferred between two rail THERE IS LIMITED INLAND WATERWAY
networks and their accompanying handling systems. DEVELOPMENT107
A particular concern is the lack of financial viability of the Despite access to natural networks, inland waterway op-
current system.103 As noted, the focus on laying new rail- erations require significant financial resources. While the
ways in expensive areas with little economic value has rivers are free, various efforts are required to ensure that
resulted in limited funds for maintaining more important they remain navigable. This includes extensive dredg-
networks that would lead to revenue growth.104 This is ing and the maintenance of adequate communications
complicated by the lack of a commercially focused finan- and navigation facilities. These responsibilities lie with the
cial management system which could adequately align MoT Directorate of Water Resources Management, which
expenses with potential revenues, leading to more effec- operates through several other agencies. It has been es-
tive investment decisions. timated that the Directorate spent around US$5 million
dredging the two main river systems, the Ayeyarwady
and the Chindwin, since the turn of the century. Such
INADEQUATE ROAD NETWORKS LIMIT limited expenditure is deemed inadequate, and the re-
CONNECTIVITY105 sult is that many routes have insufficient clearance during
low water season, thereby creating safety hazards.108,109
The primary road network had historically been devel- Stakeholders mention that the lack of financing has more
oped to connect the north and south of the country. of an impact on acquiring spare parts and fuel rather than
Nevertheless, as outlined in Myanmars National Road on purchasing the dredging equipment itself.
Network Plan, the primary network has been extended
to provide greater access. Even so, low level and local In addition to safety and navigation, the lack of develop-
roadways are still much less extensive and often remain ment has also had a direct impact on inland port facili-
in poor condition.106 ties.110 Many of these facilities are little more than landing
docks, lacking in mechanization and modern inventory
More efficient development and management of the road and transfer management facilities. This results in inef-
networks has been hindered by the complex framework ficient operations and manual loading/unloading, which
can lead to more incidences of damaged goods.
99. ADB. Myanmar: Transport Sector Initial Assessment. October, 2012.
100. Ibid. p. 11.
One of the key reasons for the limited investment is the
101. ITC (2013). Study on Development of Trade Facilitation, Logistics practice of enforcing tariffs that are fixed by the govern-
and Infrastructure. Internal ITC NES background report. ment at levels well below cost. If tariffs were allowed to rise
102. Ibid.
103. ADB (2012). Myanmar: Transport Sector Initial Assessment, p. 11. 107. ADB (2012). Myanmar: Transport Sector Initial Assessment.
Manila: ADB. Manila: ADB.
104. ADB (2012). Myanmar in Transition: Opportunities and Challenges, 108. Ibid.
p. 24. 109. OECD (2013). Multi-dimensional Review of Myanmar, Volume1.
105. ADB (2012). Myanmar: Transport Sector Initial Assessment. Initial Assessment, p. 137. OECD Development Pathways, OECD
Manila: ADB. Publishing.
106. ADB (2012). Myanmar in Transition: Opportunities and Challenges, 110. ADB (2012). Myanmar in Transition: Opportunities and Challenges,
p. 24. p. 24.
WHERE WE ARE NOW 29
to market levels, the governing agencies would be able to start a business in Myanmar, applicants must submit 11
modernize infrastructure and improve inland waterway de- documents as opposed to the seven required on aver-
velopment efforts. In addition to tariff liberalization, greater age in East Asia and the Pacific, and significantly more
participation from the private sector would lead to better than the five required by OECD countries. Moreover, the
operation and maintenance practices. process takes an average of 72 days, instead of 37.8 and
11.1 respectively for the region and OECD. Lastly, both the
cost of the procedures and the minimum capital required
BURDENSOME BUSINESS PROCEDURES are significantly higher than in the region (cost as a per-
INCREASE COSTS AND RISKS centage of income per capita: Myanmar 176.7%, region
29.8% and OECD 3.6%; minimum capital as a percentage
The processes that businesses must undergo to perform of income per capita: Myanmar 7,016%, region 293.3%
a variety of basic functions are complex, costly and time- and OECD 10.4%).
consuming. Basic processes such as establishing a busi-
ness take an unnecessary amount of time. In the World Coordinated efforts must be made to reduce both the
Banks Doing Business Report, Myanmar was ranked 189 time and cost of such key procedures. This will allow en-
out of 189 countries for starting a business.111 In order to terprises to operate more efficiently and better respond to
dynamic market demands, thereby increasing their com-
111. World Bank (2013). Doing Business 2014. petitiveness with respect to foreign competition.
ENTERPRISE ISSUES (DEMAND-SIDE)
Box 4: Enterprise issues affecting TFL in Myanmar
Slow transportation from production site to destination increases costs, risks and turnaround
time.
High and volatile transportation costs increase risks and diminish profitability.
Insufficient access to modern financial tools increases costs and risks, and decreases efficiency.
SLOW TRANSPORTATION FROM

PRODUCTION SITE TO DESTINATION
INCREASES COSTS, RISKS
AND TURNAROUND TIME
Both roads and railway provide insufficient coverage, es-

pecially of remote areas, and access routes that connect
local producers to warehouses and distribution centres
are limited.112 Indeed, limited investment in lower level
road networks leaves remote communities cut off from
core networks and basic services.113 Moreover, the roads
that do exist are in poor condition114 and congested, there-
by increasing transport times and costs.115 Aside from the
additional costs associated with longer turnarounds, long
travel times increase the risk that goods will either spoil
or be subject to changing market conditions en route to
their destination.
INSUFFICIENT ACCESS TO MODERN

HIGH AND VOLATILE TRANSPORTATION FINANCIAL TOOLS INCREASES COSTS
COSTS INCREASE RISKS AND DIMINISH AND RISKS, AND DECREASES EFFICIENCY119
PROFITABILITY
Enterprises in Myanmar have access to only a limited
The high costs associated with transportation stem from number of financial trade tools, as the market lacks ad-
a variety of sources.116 First and foremost is the high equate financial instruments for export operations as well
level of fuel consumption required by road travel, given as credit facilities to support trade.120 Telegraph transfers
that fuel is subject to volatile prices on the global mar- are used in roughly 90% of export operations, and al-
ket. Maintenance costs and the associated cost of spare though letters of credit are available, they are long and
parts for vehicles are also high, as the fleets rely large- complicated.121 Moreover, current FDI law does not allow
ly on second-hand trucks that require frequent repairs. foreign companies to trade in Myanmar. The result is that
Moreover, the labour costs for drivers are significant.117 local account to account transfers are unavailable and
The slow travel times discussed above can therefore lead exporters must engage in more costly and timely over-
to significantly greater variable costs. seas transfers. Further complicating the matter, outbound
bank transfers in US$ are not allowed unless an exporter
Another cost base is that of storage surcharges. These has received specific permission from the Central Bank.
fees are charged to exporters due to the prevalence of These issues are complicated by the fact that Customs re-
Free on Board as opposed to Cost and Freight ship- quires proof of funds before granting clearance of goods.
ping.118 The limited fixing of destination and terminal han-
dling charges by exporters can also result in unexpected The absence of adequate insurance products increases
costs. Lastly, the tendency to insufficiently document the risk of engaging in trade as well. The market provides
agreed-upon charges makes it difficult for exporters to no service liability insurance and no limited liability insur-
recoup unexpected costs through arbitration. ance for trucks and cargo. The only protection available
is that which is covered by standard trading conditions,
which are specified at 10 times the cost of transportation.
p. 24.
113. ADB (2012). Myanmar: Transport Sector Initial Assessment. Lastly, import finance is limited, despite the fact that
Manila: ADB. Customs requires an advance provision for effected pay-
114. OECD (2013). Multi-dimensional Review of Myanmar, Volume ment. Such provisions diminish the ability of enterprises to
1. Initial Assessment, p. 137.OECD Development Pathways, OECD be flexible in responding to changing market conditions,
Publishing.
thereby hindering their ability to meet buyer demands in
115. Republic of the Union of Myanmar Ministry of Hotels and Tourism
(2013). Myanmar: Tourism Master Plan 20132020, Final Draft Report, a timely fashion.
p. 14.
116. OECD (2013). Multi-dimensional Review of Myanmar, Volume
1. Initial Assessment, p. 117. OECD Development Pathways, OECD 119. NES third consultation.
Publishing. 120. McKinsey Global Institute (2013).Myanmars Moment: Unique
117. OECD (2013). Multi-dimensional Review of Myanmar, Volume Opportunities, Major Challenges, p. 44.
1. Initial Assessment, p. 117. OECD Development Pathways, OECD 121. Ksoll, C., Myint, A.K. & Lwin, T.G. (2013). Business Process
Publishing. Analysis: Export of Rice and Mango, and Import of Palm Oil in Myanmar.
118. NES third consultation. SATNET Asia.
WHERE WE WANT TO GO 31
WHERE WE WANT TO GO
VISION
Although Myanmar has made progress in developing its foreign trade partners. The result would be higher profit-
TFL services, the analysis performed under this strategy ability for domestic enterprises and an environment that
indicates that it has yet to achieve a level of functioning stimulates the expansion of exports to new and more de-
that can adequately support competitive export develop- manding buyers.
ment. A more efficient movement of goods would directly
decrease costs and uncertainty, while at the same time In light of the above, the following vision has been devel-
stimulating more reliable and stable relationships with oped for the TFL function:

A cutting-edge, efficient, integrated and predictable logistics

and trade facilitation system for growth, competitiveness
and the development of Myanmar.
The following priorities will constitute key elements en- 4. Enhance the capacities of public and private sec-
abling the achievement of Myanmars vision for an en- tor players to effectively and consistently coordinate
hanced TFL system. These priorities are addressed in the activities.
cross-sectors strategic PoA. 5. Increase efficiency by promoting the development of
integrated services.
1. Improve efficiency and reliability by introducing and ef- 6. Support the facilitation of trade flows by participating
fectively implementing ICT systems, while at the same in regional integration efforts.
time building capacities for their use. 7. Ensure dialogue between operators in order to facili-
2. Build confidence by ensuring the transparency and tate the integration of transport systems.
predictability of rules and regulations and facilitating
access to trade-related information.
3. Facilitate efficiency by accelerating the development
of physical infrastructure such as roads, railways,
bridges, ports, intermodal terminals, dry ports, inland
container depots and free zones.
HOW TO GET THERE 33
HOW TO GET THERE
The vision of the strategy to have cutting-edge, efficient, through a PPP, and creating a one-stop shop information
integrated and predictable logistics and trade facilitation web portal.
system for growth, competitiveness and the development
of Myanmar responds to the constraints, but equally to These strategic objectives are structured around a spe-
the ambitions, identified in the cross-sector strategy. The cific set of activities that are intended to address the wide
following section explains the framework that will guide range of issues confronting the TFL function. Independent,
the implementation of the strategy. A detailed action plan yet mutually supporting activities, will bolster specific ar-
setting out what needs to be done, and by whom, is pre- eas of weakness. The coordinated resolution of such
sented at the end of this section. weaknesses, however, will serve as the foundation for
value-added interaction between functional areas. This,
in turn, will lead to the realization of the strategic objec-
STRATEGIC OBJECTIVES tives and, ultimately, the cross-sector vision.
The following four strategic objectives have been identified Each of the strategic objectives relies upon a set of opera-
in order to achieve the overall vision for the cross-sector. tional objectives. The operational objectives are interme-
diate achievements that must be reached in order for the
Improve the quality of facilitation and logistical services strategic objectives to be met. At the most basic level, the
by encouraging the development of skills and the adop- operational objectives are realized through the implemen-
tion of best practices. This objective will be realized by tation of various concrete activities, each of which serves
facilitating the development of modern insurance prod- to support a specific priority area within the competency
ucts; enhancing human resource skills at governmental of the relevant operational objective. Ideally, each activity
bodies; upgrading capacities of freight forwarders and will be translated into a project of its own. To this end, the
customs brokers; and enhancing capacities of freight and existing programmes or potential support column in the
logistics enterprises. PoA is provided so that donors may select activities that
are in line with their own competencies, thereby facilitating
Improve facilitation and logistical capacities by encour- the conversion of activities into real-life initiatives.
aging the development of physical and non-physical in-
frastructure. This objective will be achieved through the
introduction of an e-government system; the upgrading IMPORTANCE
of the transportation network; and the modernization of
the logistics infrastructure.
OF COORDINATED
IMPLEMENTATION
Amend the regulatory and oversight framework in order to
facilitate a more efficient trade environment. This objective The broad range of activities, together with the complex
will be realized by updating air and marine regulations; nature of integrated intervention, requires careful imple-
modernizing inland water, rail and road transport regula- mentation that efficiently directs resources and monitors
tions; amending customs procedures; updating financial results at both the micro and macro levels. To this end, the
regulations; and strengthening the public and private sec- Myanmar Trade Development Committee (MTDC) was
tor dialogue on TFL issues. established to facilitate the PPP in elaborating, coordinat-
ing and implementing the NES. In particular, the MTDC is
Ensure that exporters have sufficient knowledge and ca- tasked with coordinating the implementation of activities
pacities to meet TFL requirements. This will be accom- in order to optimize the allocation of both resources and
plished by facilitating the diffusion of TFL requirements efforts across the wide spectrum of stakeholders. As part
of the NES, the implementation of the TFL strategy also facilitation. It manages trade registration, import/export
falls within the purview of the MTDC. licensing, rules of origin, goods inspection and testing,
and transit rights. Its involvement in such wide-ranging
Such efforts will involve directing donor and private and activities relevant to the smooth functioning of trade fa-
public sector organizations towards the various NES pri- cilitation makes it an attractive candidate for directing and
orities in order to avoid duplication and guarantee maxi- monitoring implementation under this strategy.
mum impact. Responsibilities will also include monitoring
the results of activities, outputs and outcomes, while at MoT regulates multimodal air and water transport and lo-
the same time recommending policies that could serve to gistics. Its services include warehousing, freight forward-
enhance realization of the strategic objectives. With a 360 ing, maritime transport services, air transport services
degree view of progress, the MTDC will be best placed and inland water transport. MoRT regulates rail and road
to manage funding and provide regular reports to donors transport, and it is mandated to coordinate the regulation
and stakeholders. Moreover, the MTDC will play a key role and licensing of commercial vehicles. Together, these two
in recommending revisions and updates to the strategy so organizations are well-placed to coordinate the efficient
that it continues to remain relevant to, and aligned with, implementation and monitoring of logistics-related action
Myanmars changing needs. points in the PoA.
In addition to these three ministries, a number of other

IMPLEMENTATION PARTNERS institutions identified in the TSI section above will play at
LEADING AND SUPPORTING least some role in implementing cross-sector activities.
INSTITUTIONS As outline in the PoA, these supporting institutions may
perform advisory functions, while others will take leading
MoC, MoT, and MoRT will play leading roles in the imple- roles in implementing specific parts of the strategy that
mentation of the TFL strategy. MoC is tasked with setting fall within their area of competency. Each institution man-
trade policy, regulating trade, promoting trade and dif- dated to support the export development of the function
fusing information, as well as other activities relevant to is clearly identified in the strategy PoA.
THE REPUBLIC OF THE UNION OF MYANMAR
TR ADE FACILITATION AND LOGISTICS
CROSS-SECTOR STR ATEGY 2015-2019
PLAN OF ACTION
The following action plan details all the activities to be constraints and opportunities identified in the document.
undertaken over the next five years to achieve the vi- The action plan provides a clear and detailed framework
sion of the strategy. The action plan is organized around for the effective implementation of the Trade Information
strategic and operational objectives that respond to the strategy.
MYANMAR
36
Strategic objective 1: Improve the quality of facilitation and logistical services by encouraging the development of skills and the adoption of best practices.
Operational Activities Priority Beneficiaries Targets Leading Supporting Existing Estimated
objective 1=high implementing implementing programmes or costs
2=med partner partners potential support (US$)
3=low
1.1 Facilitate the 1.1.1 Train financial service providers in the development of modern 1 Banks, Training programme MoFR MIFFA 500000
development of insurance products and help them introduce such services into their Insurance established,
modern insurance product lines. companies 10% of services providers
products that cater to trained a year
shippers needs. New services gradually
introduced by leading
service providers
1.1.2 Increase awareness of insurance products at logistics service 1 Logistics Awareness-rising MoFR MIFFA 500000
providers and assist them in introducing such services into their service campaign conducted,
product lines. providers New services gradually
introduced by leading
service providers
1.1.3 Connect logistics service providers with financial service 1 Customers Joint training and MoFR MIFFA 300000
providers so that they may offer joint solutions to shippers. & service awareness-rising
providers programmes established,
Increased offer of
integrated solutions
1.2 Enhance the skills 1.2.1 Provide training to staff at government institutions involved in 1 Relevant Initial basic training All ministries UMFCCI, Sector 300000
of human resources customs and trade facilitation on the use of basic office software, government conducted, Associations
at government bodies in order to raise the ICT skills. Some software and skills is required ministries and Relevant staff trained
involved in TFL. through TA for customs but also some ministries. bodies on each new ICT
tool/software introduced,
ICT training budgets
established,
ICT skills improved and
maintained
1.3 Enhance the 1.3.1 Develop a fee-based vocational training program to strengthen 1 Freight Vocational training MoT/MoRT MIFFA/UMFCCI United Nations 500000
capacities of freight the capacity of freight forwarders and customs brokers in logistics, Forwarders, program developed and Economic and Social
forwarders and documentation, cargo handling, insurance, and transport management Customs self-sustaining, Commission for
customs brokers. issues, including multi-modal. brokers Regular training and tests Asia and the Pacific
organised, (UNESCAP)/Japan
Freight Forwarders International

Customs brokers staff are Cooperation Agency
certified, their capacities (JICA)/AOT
improved and maintained
1.3.2 Implement the programme through seminars and trainings aimed 2 Freight Regular training and tests MIFFA UMFCCI JICA/UNESCAP/AOT 100000
at increasing human resource capacities in order to increase the quality forwarders organised,
of their services. &customs Freight Forwarders
brokers Customs brokers staff are
certified, their capacities
Strategic objective 1: Improve the quality of facilitation and logistical services by encouraging the development of skills and the adoption of best practices.
3=low
1.4 Enhance the 1.4.1 Develop and implement a programme to strengthen the capacity 1 Multimodal Vocational training MoT/MoRT MPA/ IWT/ MoCon/ UNESCAP/JICA 1000000
capacities of freight of transport and logistics companies in supply-chain organization, transport program developed and MIFFA/ MMMDA/
and logistics inventory management, processing and special services, and in the operators, self-sustaining, MCBA
enterprises. field of multimodal transport. Logistics Regular training and tests
and supply organised,
chain service Freight Forwarders
providers Customs brokers staff are
certified, their capacities
1.4.2 Encourage the creation of large and integrated transport and 1 Transporters Legal framework and MoT/MoRT MIFFA/ 200000
logistics companies capable of providing services nationwide, if not adequate government
internationally. incentives in place,
1.4.3 Develop and introduce integrated cold-chain management 1 Exporters Vocational training MoT Customs/ MIFFA/ 300000
capacities at transport and logistics companies. program developed and UMFCCI/ MCBA
self-sustaining,
Regular training and tests
organised
1.4.4 Develop and implement a programme to enhance the quality of 1 Transporters Quality management MoCon MoT/MoRT 1000000
ground transport fleets. programme developed,
10% of companied
certified per year
1.4.5 Introduce modern ICT tools at transport and logistics companies 1 All operators Introduce legal MoRT Myanmar Post 2000000
through awareness-raising and trainings. requirement on paperless and Tele-
transactions for transport communications
and logistics,
At least 10 large
companies comply in 2
years
1.5. Build business Hold regular training workshops with exporters in order to build their 1 Exporters, A training workshop for MoC-TTI Freight and 2000000
and export skills of capacity in trade. These workshops, to be held in major cities, should Traders exporters established and custom brokers
farmers, processors increase exporters knowledge and capacities in the following areas: operational, associations,
and exporters trade documentation, customs procedures, tax systems, multimodal Increased number of MMMDA, MBA
transport, international regulatory conventions, contracts and traders and exporters
negotiation, insurance and financial products, rules of origin, domestic trained and certified,
and international regulation, licensing requirements and procedures, Exporters skills and
certification requirements and procedures, HS codes, dangerous capacities in trade
goods, etc. gradually improved
PLAN OF ACTION
37
38
Strategic objective 2: Improve facilitation and logistical capacities by encouraging the development of physical and non-physical infrastructure.
3=low
2.1 Introduce an 2.1.1 Perform a comprehensive review of ministry procedures and 1 All operators Review completed , MoFR Customs office Nippon All Cargo 100000
e-government requirements in order to eliminate duplications in both procedures and All duplications and Consolidation
system. document preparation. overlaps eliminated, System (NACCS)
New revised procedures
introduced
2.1.2 Establish and introduce an e-government system at all ministries 1 All operators E-government platform e.g. MoC e.g. UMFCCI 500000
in order to facilitate information transfer and reduce redundancies. established in MoC and
The e-government system shall be coordinated by MoC and serve as a single-window compatible
single window for trade-related matters.
2.1.3 Enable online applications and payment for import/export 1 Users Online platform MoC Customs office NACCS 500000
licences, relevant certifications and permits, and any other procedures established and
required by Customs. operational,
Increased number of
online transactions
2.2 Upgrade the 2.2.1 Modernize the road network by improving road conditions, 1 Logistics service Appropriate legislation MoCon MoT/MoRT/IWT/MPA PPP 3000000
transportation expanding all-weather paving, expanding the road network and ensuring providers enacted,
network. the networks proper maintenance. Introduce truck parks, maintenance Road rehabilitation and
and parking areas, and rest stops along major transportation corridors modernisation master
and in important transport nodes (Yangon). plan approved,
At least 3 projects initiated
in year 1.
2.2.2 Enhance the safety and efficiency of the inland waterway network 2 Shipowners, Night-time navigation MoT IWT 10000000
by introducing night-time navigation systems. users systems,
Safety and efficiency
increasingly improved,
2.2.3 Expand the capacities at international airports to accommodate 2 Customers, Cargo terminals build MoT, Department MoT, DCA PPP n/a
the growth in cargo volume. Logistics service or expanded at main of Civil Aviation
provider international airports, (DCA)
Handling capacity
increased to match
demand in 3 years
2.2.4 Introduce standardized aviation safety measures and security 1 Airport Standardized aviation MoT, MoT, DCA, Ministry n/a
equipment at airports, such as explosive detectors, and create an operators, Users safety measures and Ministry of of Communications
international communications control unit. security equipment Information, DCA and Information
introduced at airports in Technology
2 years,
Airport safety increased,
2.2.5 Expand the reach of the national rail network and ensure the 1 Customers Rail rehabilitation and MoRT MoCon/ MoT 1000000
networks proper maintenance. development master
approved and published,
Rehabilitation projects for
3 major commercial links
initiated in 2 years
3=low
2.2 Upgrade the 2.2.6 Investigate, and if possible implement, ways to integrate 1 Regional Feasibility study MoRT MoCon/ MoT 500000
transportation Myanmars railways with the regional network and facilitate the cross- completed and published,
network. border compatibility of trains. Recommendations
examined and endorsed,
Implementation project
developed
2.3 Upgrade 2.3.1 Enhance the efficiency of road transport by introducing truck 2 Transporters Terminal availability MoT/MoRT MoCon PPP n/a
the logistics terminals along major transportation corridors and in important increased to match
infrastructure. transport nodes (Yangon). demand in 3 years
2.3.2 Expand the use and stimulate the development of bonded 1 All operators At least one new bonded MoT/ MIFFA/ Customs/ MIFFA/ 5000000
warehouses through the identification of suitable locations at and warehouse piloted per UMFCCI/ MoRT/ MoT/ MPA
near ports, airports, industrial zones, and special economic areas year MPA
(especially Mandalay, Mu Se, and Myawady). Develop a pilot project
for the construction of a sea-floating bonded warehouse. Ensure that all
bonded warehouses are equipped with modern ICT, EDI and inventory
management capabilities.
2.3.3 Develop and implement a plan to construct jetty and riverbank 1 All operators Jetty and riverbank MoT/IWT MoT/IWT PPP n/a
palletized cargo trans-shipment terminals along the rivers of the inland palletized cargo trans- associations
water system that include ICT systems and mechanized handling shipment terminals
capacities, to increase efficiency and capacities while reducing the progressively modernised
incidence of cargo damage. or built,
Reduced cargo damage
rates
2.3.4 Develop and implement a plan to modernize the station facilities 1 All operators Station facilities on the MoRT MoT/MIFFA n/a
on the rail network, expand their capacities, and introduce ICT systems rail network and their
and mechanized handling in order to increase efficiency and reduce the capacities expended,
incidence of cargo damage. Reduced cargo damage
rates
2.3.5 Modernize the maritime ports by expanding their capacities, 1 Carriers, Maritime ports capacities MoT MPA/IWT/MIFFA PPP n/a
upgrading equipment, expanding mechanized handling capacities, Non-Vessel expanded,
introducing ICT and EDI systems, and introducing modern container Operating Cargo handling efficiency
management and inventory systems. Common and timelines increased
Carriers,
Vessel-Operating
Common
Carriers
2.3.6 Develop a dry port that is connected directly with the rail, road 1 Third-party 3 dry port projects MoT/MoRT Customs UNESCAP n/a
and seaport networks in order to reduce time, cost and port congestion logistics initiated office/MIFFA/IWT
while ensuring improved national capacities for shifting, consolidation, providers 1 dry port operational
distribution, supply chain management and storage. per year
PLAN OF ACTION
39
40
3=low
2.4 Develop cold 2.4.1 Construct warehouses and pack houses at airport, border trade 2 Exporters, New warehouses and pack CDCs UMFCCI n/a
chain management zone (Wyawaddi, Muse). Importers, houses built at Wyawaddi Region Governments
capacities Traders, and Muse. -Industrial zone
Freight committee
forwarders
2.4.2 Lobby road transport authority to allow trucks to integrate 1 Freight A petition submitted to MIFFA MOC, MoT, Sector 50000
a generator for provision of electricity to refrigerate containers thus forwarders, MIFFA, associations
enabling them to provide cold storage. This is a temporary measure Truck transport Regulatory framework
until the truck fleet is modernized. operators adjusted accordingly
2.4.3 Establish a priority lane for fresh products and perishables (as 1 Exporters, Priority lanes established MoF- Customs Port Authorities n/a
opposed to dry products) for processing by the X-ray scanner at ports Importers, in 50% of merchandise
in order to reduce the waiting times. Traders, ports in year one,
100% in year two
Freight
Waiting times reduced
forwarders
by 50%
Cargo service
providers
2.4.4 Construct public cold storage facilities in major cities to better 2 Exporters, Cold storage facilities UMFCCI (private Region Governments JICA n/a
manage exports and imports of perishable goods. Importers, build in all major cities in operators)
Traders, 5 years
Freight
forwarders
Cargo service
providers
Strategic objective 3: Amend the regulatory and oversight framework in order to facilitate a more efficient trade environment.
3=low
3.1 Update air and 3.1.1 Establish a working group (WG1) comprised of both public and 1 Pure Freight WG1 established; MoT MoT/ MPA/ DCA/ 200000
marine regulations private stakeholders in charge of identifying deficiencies in transport- Forwarders & Regulation and oversight MIFFA/ MMMDA/
so that they are related oversight and regulations in maritime and air transport. Logistics Service of maritime and air MCBA
consistent with providers, transport is strengthened
international MTO, and transparent
standards. Traders
3.1.2 Have Working Group1 prepare a study of the gaps between 2 Maritime and Study is conducted and MoT MIFFA/ MMMDA/ 200000
national and international standards with regards to both air and marine air transport published, MCBA
transport regulation and oversight as it applies to safety, security and operators; Regulation and oversight
facilitation. Traders of maritime and air
transport is strengthened
and transparent.
3.1.3 Introduce and approve new maritime legislation based on the 1 Maritime New maritime transport MoT MPA 300000
working groups recommendations so that it is coherent with those transport legislation is passed in
adopted by the International Maritime Organization. operators; line with ASEAN and IMO
Traders standards
3.1.4 Introduce and approve new air transport legislation, based 1 Air transport New air transport MoT DCA 300000
on Working Group 1s recommendations, so that it is coherent with operators; legislation is passed in
that adopted by the international community and supported by the Traders line with ASEAN and ICAO
International Civil Aviation Organization. standards
3.2 Update inland 3.2.1 Have Working Group1 (see 3.1.1) conduct a study that identifies 1 Ship operators Study conducted and MOT/ IWT Currently being 100000
water, rail and road deficiencies in the inland waterway regulatory environment. Traders published Department of drafted by
transport regulations Inland Waterway Department of
in order to improve Transport Inland Waterway
service quality. Transport (under
MoT)
3.2.2 Introduce and approve legislation that establishes an adequate 1 Ship operators Legislation drafted and MOT IWT Currently being 200000
regulatory framework for national inland waterway transport while Traders enacted (Department of drafted by
facilitating connectivity with regional networks. Inland Waterway Department of
Transport) Inland Waterway
Transport (under
MoT)
3.2.3 Update relevant regulations in order to reduce documentation 2 Ship operators Legislation updated and MOT Department of Marine 100000
and simplify procedural hurdles required for inland water operators to Traders streamlined (Department of Administration/MPA
purchase new vessels. Inland Waterway
Transport)
3.2.4 Develop and introduce a standard cargo manifest system and 1 All transport Standard cargo manifest MOT/ MPA/DCA/MIFFA/ Port EDI supported 2000000
ensure its adoption by road and rail logistics stakeholders. operators, system introduced, MOR Truck Associations, by JICA
Cargo services Multimodal Law amended Highway truck
providers, accordingly associations,
Traders MMMDA/MBCA
PLAN OF ACTION
41
42
3=low
3.3 Amend customs 3.3.1 Eliminate the requirement of advance payment on income taxes. 1 Importers Advanced payment on MoFR Customs office NACCS 25000
procedures in order Producers income taxes requirement
to improve efficiency removed and legislation
and guarantee adjusted accordingly
transparency.
3.3.2 Eliminate the requirement of advance provision of payment on 1 Importers Advanced payment on MoFR Customs office NACCS 25000
imports. Producers imports requirement
removed and legislation
adjusted accordingly
3.3.3 Review and reduce document requirements for import/export 1 Customers Document requirements MoFR Customs office NACCS 100000
licences. reduced to ASEAN
average
3.3.4 Simplify administrative procedures and streamline paperwork 1 All operators Online e-government e.g. MoC e.g. UMFCCI 300000
through the e-government system by reducing redundancy and client platform established
ensuring the efficient sharing of information between all relevant and operational,
organizations. Increased percentage of
trade transacted through
the platform
3.3.5 Create a modern customs clearance management system based 1 Importers; Customs clearance Customs Dept. MoC UNESCAP, JICA 5000000
on risk assessment and management, and introduce an effective risk Exporters system is in place. (MoF) UMFCCI and EU assistance
management system at relevant ministries and government bodies. Average customs
clearance time reduced
to ASEAN average in two
years.
3.4 Amend financial 3.4.1 Update FDI regulations to allow foreign companies to open bank 2 All operators FDI regulations updated, MIC/CBM All related associations 100000
regulations accounts, thereby allowing enterprises to engage in local account local account transfers
to facilitate transfers. increasing
modern payment
mechanisms. 3.4.2 Remove restrictions in order to allow outbound US$ transactions 1 All operators Restriction on foreign USD CBM Ministry of Finance 100000
without Central Bank approval. transaction removed and Revenue
3.4.3 Enable international credit card payments. 1 All operators International credit card MoFR Banks PPP 100000
payments enabled
3.5 Strengthen and 3.5.1 Create a public and private (50/50) technical group on TFL, 1 All operators Technical group on TFL MoC/MoT/MoRT All related associations 50000
formalize the public mandated to meet regularly to implement a medium-to-long-term formally established,
and private sector agenda on TFL. The group should have a formalized structure.
dialogue on TFL.
3.5.2 Public and private sector members of the technical group on TFL 1 All operators Medium-to-long-term MoC/MoT/MoRT All related associations 50000
to agree on a medium-to-long-term agenda for improving TFL issues. agenda adopted
3.5.3 Hold regular meetings of the TFL technical group to: 1 All operators Implementation MoC/MoT/MoRT All related associations 300000
Track implementation of the TFL agenda (bi-annual meeting); and monitoring in place
Define immediate actions on solvable issues, on the implementation
of which public and private sectors can cooperate.
3.5.4 On an annual basis, share the TFL agenda with donors to promote 1 All operators Donors consulted at least MoC/MoT/MoRT All related associations 100000
joint activities for TFL enhancement. annually
3=low
3.5 Strengthen and 3.5.5 Increase coordination through exchange of information, 1 All operators Discussion and MoC/MoT/MoRT All related associations 200000
formalize the public experience and knowledge between border authorities and private coordination groups
and private sector sector institutions on regulations, rules and costs to ensure that established and meeting
dialogue on TFL. issues can be tackled as they arise, and that regular information is regularly
disseminated to exporters either through weekly newsletters, a portal,
or mass emails.
3.5.6 Create collaboration between the private and public sectors to 1 All operators Specific working group MoC/MoT/MoRT All related 200000
streamline procedures such as obtaining a licence, Certificate of Origin, or discussion and associations/UMFCCI
standard certificates, etc. and ensure sustainability of these procedures coordination groups
(electronic documents and electronic applications) in order to speed up established and meeting
processes and reduce unwarranted costs and time wasting.
Strategic objective 4: Ensure that exporters have sufficient knowledge and capacities to meet TFL requirements.
objective 1=high implementing implementing programmes costs
2=med partner partners or potential (US$)
3=low support
4.1 Facilitate the 4.1.1 Create Working Group 2, comprised of public and private sector All operators Working Group 2 MOC UMFCCI 50000
diffusion of TFL stakeholders tasked with ensuring that TFL information is regularly established,
1
requirements through diffused to stakeholders (may be the same as the technical group in Information regularly
a PPP. 3.5). disseminated
4.1 Facilitate the 4.1.2 Provide a series of capacity-building (train the trainer) seminars All operators Train the trainer MOC/MIFFA/UMFCCI MMMDA/MMU/T VET UNESCAP/A FFA 50000
diffusion of TFL to this group that will enable them to fulfil their role as an anchor of 1 workshops conducted, FIATA
requirements through knowledge with regards to TFL.
a PPP.
4.1.3 This group shall hold regular seminars/meetings with stakeholders All operators Main trading partners MOC MIFFA TTI 300000
in which they discuss developments, prospects and problems related to 1 included in the working
TFL in Myanmar and important trade partner countries. group
4.1.4 This group shall hold regular training sessions with stakeholders All operators Training sessions MOC MIFFA/UMFCCI TTI/MIFFA 500000
in which they help them prepare to confront TFL issues in Myanmar regularly conducted
and important trade partner countries. These sessions should increase
exporter knowledge and capacities in the following areas:
Trade documentation;
Customs procedures;
Tax systems;
Multimodal transport; 1
International regulatory conventions;
Contracts and negotiation;
Insurance and financial products;
PLAN OF ACTION
Domestic and international regulation;

Licensing requirements and procedures;
Certification requirements and procedures;
Dangerous goods, etc.
43
44
Strategic objective 4: Ensure that exporters have sufficient knowledge and capacities to meet TFL requirements.
objective 1=high implementing implementing programmes costs
2=med partner partners or potential (US$)
3=low support
4.1 Facilitate the 4.1.5 This group shall organize participation in international TFL fairs. All operators Increased participation in MOT/MOC MIFFA/UMFCCI TTI/MIFFA/MCBA 500000
diffusion of TFL international TFL meetings MECB
1
requirements through and conferences
a PPP.
4.2 Create a one- 4.2.1 A web portal shall be created and maintained by MoC in All operators Portal established and MOC/MOT/MOR UMFCCI/MIFFA 200000
stop shop web portal conjunction with Working Group 2 (see 4.1.1). 1 regularly updated MO REVENUE MPA/DMA
containing updated
and transparent 4.2.2 In addition to the creation of the portal diffusion site, the Ministry All operators E-government platform MOC/MOT/MOR UMFCCI/MIFFA 100000
information on the will ensure the creation of a reliable system for gathering, filtering, and 1 implemented and used MO REVENUE MPA/DMA
TFL environment. streamlining relevant information.
4.2.3. Set up, update, and maintain an Internet portal to provide All operators Trade Information Portal MOC/MOT/MOR UMFCCI/MIFFA 500000
news, statistics, and information relating to export news (Customs, set up, operational and MO REVENUE MPA/DMA/MMMDA/
TFL, finance, trade law, etc.) in Myanmar and important trade partner compatible with future MBCA/ MCTA/IWA
countries. The information contained in this portal should be integrated single window project,
with the e-government single window. Among others, the website shall extensively used by
contain sections on: traders
General and product-specific customs and licensing procedures 3
Market demand and market access conditions
General and product-specific certification procedures and requirements
Dangerous goods and restrictions
Ports, warehousing, cargo and transport services
Business matching
APPENDIX 1: MEMBERS OF SECTOR TEAM 45
APPENDIX 1 :
MEMBERS OF SECTOR TEAM
No Name Designation Organization E-mail

1 U Saw Aung General Manager Ministry of Construction mrsawaung59@gmail.com
2 Daw SandaThein Director Transport Planning Dept sabdatgeub,54@gmail.com
3 U Sein Win DGM Department of Transport
4 U Myint Soe Director Ministry of Commerce
5 Daw Naw Mutakapaw Director Ministry of Commerce mutakapaw@gmail.com
6 U Nyi Nyi Aung Deputy Director Ministry of Commerce nyiaung.it@gmail.com
7 U Ohn Myint Deputy Director Ministry of Home Affairs
8 Daw Nilar Zin Deputy Director Ministry of Mines nilarzin@gmail.com
9 Daw Khin Sabai Deputy Director Dept: of RTAD
10 Daw NilarThein Assistant Director Ministry of Commerce nlthein24@gmail.com
11 U Van Aung Assistant Director Internal Revenue Dept
12 U Htaik Htaik Assistant Director Department of Transport htaik6@gmail.com
13 Daw Kyawt Kyawt Assistant Director Department of Civil kyawt.moe40@gmail.com
Moe Aviation
14 U San Htay Bo Manager Myanmar Port Authority
15 U Nyi Nyi Soe Staff Officer Custom Department
16 U Hla Win Staff Officer Ministry of Commerce
17 U Yan Aung Head of Department Myanmal Costal
Shipping Association
18 U Thet Aung CEO Myanmar Container- pobythetaung@gmail.com
Trucks Association
19 U Peter Thaung Pe Vice Chairman Myanmar Mercantile petergte@gmail.com
Marine Development
Association (MMMDA)
20 Daw Khin Moe Myint Observer JICA/TTI khinmm.tti@gmail.com
21 Daw Su Win Myat Assistant General Myanmar Citzens Bank ib@mcb.com.mm
Manager
22 U Hla Oo Chairman Myanmar Highway
Trucks Association
23 U Ko Ko Naing Joint Secretary Myanmar Highway
Trucks Association
24 U Min Kyi General Manager MITT
25 Daw Ohn Mar Maw Joint BOD MIFFA ohnmarmaw2008@gmail.com
26 Daw Hla Hla Yi Secretary/coordinator MIFFA honeytha373@gmail.com
27 U Aung Myo Thu
28 Mr. Kazuo Mishima Observer JICA/TTI
29 Mr. Ohtsuru Observer JICA/TTI
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With the financial support of:

Street address: 54-56, rue de Montbrillant In collaboration with:
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Postal address: Office No.3, Zeya Htani Road 1211 Geneva 10, Switzerland
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Phone: +95 67 408495 / +95 67 408266 Fax: +41-22 733 4439
Fax: +95 67 408256 E-mail: itcreg@intracen.org
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Myanmar NES - Trade Facilitation and Logistics

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REPUBLIC OF THE UNION OF MYANMAR

NATIONAL EXPORT STRATEGY

Myanmar Ministry of Commerce

For any queries about the NES, please contact:

The Department of Trade Promotion

Office No.3, Zeya Htani Road

Phone: +95 67 408495 / +95 67 408266

The reproduction, publishing or transmission in any form or by any means of

Layout: Jess Als www.sputnix.es

The International Trade Centre (ITC) is the joint agency

Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland

Telephone: +41-22 730 0111

Fax: +41-22 733 4439

Myanmar Ministry of Commerce

The coordination support of the Ministry of Commerce The Directorate of Trade:

The members of the strategy team:

U Saw Aung U Van Aung U Peter Thaung Pe

ADB Asian Development Bank MoT Ministry of Transport

WHERE WE ARE NOW 5

CURRENT STATE OF TFL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INSTITUTIONAL PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

CROSS-SECTOR DEVELOPMENT INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . 21

COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

WHERE WE WANT TO GO 31

HOW TO GET THERE 33

STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IMPORTANCE OF COORDINATED IMPLEMENTATION . . . . . . . . . . . . . . . . . . 33

PLAN OF ACTION 35

APPENDIX 1: MEMBERS OF SECTOR TEAM 45

Figure 1: Buy-ship-pay model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Figure 3: GMS economic corridors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figure 4: LPI of ASEAN nations 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 6: Myanmar ports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 7: Myanmar export procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Figure 8: Myanmar import procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table 1: Time and cost to export and import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 2: Import/export procedures for select South-East Asian economies (2008). . . 6

Table 4: GMS economic corridor routes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Table 5: Impact of economic corridor development afterNorth-South Corridor

Table 6: Key cross-border trade points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Table 7: Exporting from Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Table 8: Importing into Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Table 9: Myanmar TFL policy support network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 10: Myamar TFL trade services network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Table 11: Myanmar TFL civil society network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Box 1: Defining TFL in the context of export competitiveness . . . . . . . . . . . . . . . . . . . . . . 4

Box 2: Policy issues affecting TFL in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Box 3: Institutional issues affecting TFL in Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Box 4: Enterprise issues affecting TFL in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

The logistical infrastructure is characterized by a lack of Absence of integrated transport development;

Absence of a domestic cargo manifest system;

Slow transportation from production sites to destinations;

OPTIONS FOR FUTURE DEVELOPMENT

ROADMAP FOR STRATEGY

Finally, the governmental changes of 1962 ushered in

Box 1: Defining TFL in the context of export competitiveness

*W orld Trade Organization (n.d.). Trade Facilitation. Available from:

Figure 1: Buy-ship-pay model

WHERE WE ARE NOW

REGIONAL CONTEXT Nonetheless, table 1 highlights the significant advance-

Table 1: Time and cost to export and import

Table 2: Import/export procedures for select South-East Asian economies (2008)

Table 4: GMS economic corridor routes

WHERE WE ARE NOW 5

CURRENT STATE OF TFL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

INSTITUTIONAL PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

CROSS-SECTOR DEVELOPMENT INITIATIVES . . . . . . . . . . . . . . . . . . . . . . . . 21

COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

WHERE WE WANT TO GO 31

HOW TO GET THERE 33

STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IMPORTANCE OF COORDINATED IMPLEMENTATION . . . . . . . . . . . . . . . . . . 33

PLAN OF ACTION 35

APPENDIX 1: MEMBERS OF SECTOR TEAM 45

Figure 1: Buy-ship-pay model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Figure 3: GMS economic corridors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figure 4: LPI of ASEAN nations 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 6: Myanmar ports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 7: Myanmar export procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Figure 8: Myanmar import procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table 1: Time and cost to export and import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 2: Import/export procedures for select South-East Asian economies (2008). . . 6

Table 4: GMS economic corridor routes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Table 6: Key cross-border trade points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Table 7: Exporting from Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Table 8: Importing into Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Table 9: Myanmar TFL policy support network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 10: Myamar TFL trade services network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Table 11: Myanmar TFL civil society network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Box 1: Defining TFL in the context of export competitiveness . . . . . . . . . . . . . . . . . . . . . . 4

Box 2: Policy issues affecting TFL in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Box 3: Institutional issues affecting TFL in Myanmar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Box 4: Enterprise issues affecting TFL in Myanmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

*W orld Trade Organization (n.d.). Trade Facilitation. Available from: